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Bank of America to increase stake in Construction Bank
(Xinhua)
Updated: 2008-05-28 10:03 China Construction Bank (CCB) announced on Tuesday the Bank of America is to exercise part of its call option to buy 6 billion Hong Kong-listed CCB shares from Huijin at about HK$2.42 (31 US cents) per share. The Bank of America planned to finish the transaction on June 5, under an agreement it signed in 2005 with Central Huijin Investment, an investment arm of the government. It would reduce Huijin's CCB stake to 65.4 percent, and boost Bank of America's share to 10.75 percent, or 25.1 billion H shares, said the announcement. The shares purchased under the option may not be sold until August 29, 2011, without CCB's written agreement. (For more biz stories, please visit Industries)
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