Tuesday, December 16, 2008

Bank of America denies CCB sale report

Bank of America says it is not looking to sell 3-6 billion shares in China Construction Bank (CCB), Reuters reported. "It's not true," said a Bank of America spokesman in response to a report in the Hong Kong newspaper Apple Daily that said the US lender was hoping to raise up to US$3 billion by selling its shares at a discount of 13-17% from their Friday close. Reuters also quoted an anonymous source close to CCB denying the Apple Daily report. Despite the denials, CCB shares fell sharply in Hong Kong and Shanghai. Bank of America bought a 9% stake in CCB in 2005 for US$3 billion, and invested an additional US$1.9 billion in July 2008.

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