Bank of America sold 5.6 billion shares in China Construction Bank, the country's second largest state-owned lender, at HK$3.92 per share on January 7, the Shanghai Securities News said on Thursday.
The selling price was 12 percent lower than CCB's Tuesday closing price of HK$4.45. The sale reduces Bank of America's stake in CCB from 19.1 percent to 16.1 percent.
"Bank of America has been considering such a sale for quite a while," said CCB board secretary Chen Caihong, adding that the US bank had notified CCB of the sale in advance. According to Chen, the US bank's move was prompted by considerations regarding its own financial status and was normal under current market conditions. Chen declined to answer when asked whether the US bank will further reduce its stake in the near future.
Analysts say the Bank of America reduced its CCB stake to raise cash after its recent purchase of Wells Fargo Bank.
For more information, please read the full story in Chinese:
http://paper.cnstock.com/html/2009-01/08/content_66830092.htm
(China.org.cn by Yan Pei, January 8, 2009)
