Bank Of America Corp (BAC) Financial News - China Construction Bank Rises on Report BofA May Sell Stake
Bank Of America Corp (BAC)
China Construction Bank Rises on Report BofA May Sell Stake
2011-08-11 05:02:26
Quote: China Construction Bank Corp. (939)Bank of America
Corp. (BAC) began talks with funds in Kuwait and Qatar on selling part
of its stake in the Chinese lender.
Hang Seng Finance index (HSF)Hang Seng index.
Bank of America has held talks with the sovereign wealth
funds of Kuwait and Qatar, Reuters reported, citing people it
didn’t identify. The U.S. bank may sell some of its stake in
Construction Bank, the world’s second-largest lender by market
value, to boost capital before new international standards take
effect, three people briefed on the plans told Bloomberg in June.
“If the investment funds of Kuwait and Qatar really come
in to buy the shares of CCB, that will certainly ease the
overhang on the stock,†Sheng Nan, a Shanghai-based analyst at
UOB Kayhian Investment Co. who rates Construction Bank a
“buy,†said by phone today. “They hold a longer-term horizon
view and they don’t have funding needs like U.S. banks.â€
Agricultural Bank of China Ltd. (1288), the country’s third-
largest bank by market value. The Qatar fund holds about 22
percent of the lender’s Hong Kong-listed shares while the Kuwait
fund has 6.4 percent, according to Bloomberg data.
Rob Stewart, a Hong Kong-based spokesman at Bank of America,
declined to comment on the Reuters report.
Bank of America holds about 10 percent of Construction Bank,
according to data compiled by Bloomberg, a stake valued at about
$17 billion based on yesterday’s closing price.
Shares of Construction Bank have lost 24 percent this year,
while the Hang Seng Finance index is down 20 percent.
Hong Kongstong17@bloomberg.net
csomayaji@bloomberg.net ...
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Bank of America Corporation, through its subsidiaries, provides banking and financial services to individuals, small- and middle-market businesses, corporations, and governments primarily in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits and IRAs, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers fixed and adjustable-rate first-lien mortgage loans for home purchase and refinancing needs, reverse mortgages, home equity lines of credit, and home equity loans, as well as property, casualty, life, disability, and credit insurance. The company?s Global Commercial Banking segment provides commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, financing, securities clearing, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers advisory services, team-based investment advice and guidance, brokerage services, and wealth management solutions, as well as retirement services. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. The company was founded in 1874 and is based in Charlotte, North Carolina.
