View Full Version : Bank of America Corp

mick silver
20th November 2008, 23:01
of America Corp. (BAC) will almost double its stake in state-owned banking giant China Construction Bank Corp., and will control nearly 20% of China’s second-largest bank when the deal is finalized.

The official announcement yesterday (Monday) ends months of speculation that the Charlotte, N.C.-based BofA would dump part of its three-year-old investment the Beijing-based bank to offset the effects of the global financial crisis. In an article on Saturday, Money Morning reported that the deal was close, though noting that the actual timing was unknown.

Bank of America plans to be “a long-term and significant strategic investor in CCB,” the U.S. lender said in a statement. The shares to be acquired to carry a restriction, however: They can’t be sold before Aug. 29, 2011, unless the China bank provides special permission.

According to Caijing– the influential China business magazine that actually broke the story of the deal – BofA is paying about 36 cents a share (2.46 yuan), or 1.2 times the Beijing-based lender’s book value. Bank of America spokesman Scott Silvestri would not comment on that report, or a similar story circulated by Xinhua, the state-run China News Agency, that would represent about a 40% discount to where the bank’s Hong Kong-listed shares closed earlier today.

mick silver
20th November 2008, 23:02
They take our tax money and buys banks in china , this just pisses my off more an more , it time for them to leave USA