Bank of America Corp., Connecticut’s dominant out-of-state bank, raised more money today to cope with U.S. economic turmoil by selling part of its stake in China Construction Bank Ltd. for $2.8 billion.
Bank of America sold 5.62 billion shares in China’s second-biggest lender for 50 ½ cents each on the open market in a move that reduced its stake from 19.1 percent to 16.6 percent, according to a sale sheet viewed by The Associated Press.
Bank of America is raising money to weather the worst downturn for U.S. banks since the 1930s and absorb Merrill Lynch & Co., acquired in December. The bank received a $15 billion infusion as part of the U.S. government’s $700 billion industry bailout.
“We’re still their second largest shareholder and a long-term holder,” said Bank of America spokesman Robert Stickler. “We simply were taking a little money off the table.”
Bank of America, based in Charlotte, N.C., bought 9 percent of the Chinese bank in 2005 for $3 billion and the two launched a strategic partnership amid a flurry of tie-ups between Chinese lenders and foreign partners.
At 11 a.m., Bank of America shares traded at $14.01, down 27 cents, or 1.9 percent. (AP)
