Bank of America cuts CCB stake to 1%

Bank of America last night announced that it has sold the majority of its remaining H-shares in China Construction Bank through privately negotiated transactions, reducing its stake to approximately 1%, the US bank said in a press release.

It didn’t disclose the size of the transactions, except to say that it sold 10.4 billion shares, but based on yesterday’s closing price, the stake is valued at about $7.4 billion. It is unlikely that BoA would have been able to walk away with that amount, however, as a transaction of this size would have required a significant discount. According to the press release, BoA expects to generate an after-tax...