In a widely anticipated move, Bank of America Corp. announced Monday morning that it is selling half of its stake in China Construction Bank to a group of investors for $8.3 billion.
Analysts and investors had been speculating for weeks that B of A would sell part if its stake in the Chinese bank as part of an ongoing effort to streamline its operations and bolster its capital base.
In a news release Monday, B of A said that the deal, expected to close later this quarter, would generate an after-tax gain of $3.3 billion and generate about $3.5 billion in additional Tier 1 common capital. B of A would retain a 5% ownership stake in China Construction Bank.
The move follows an announcement last week that Warren Buffett's Berkshire Hathaway is investing $5 billion in Bank of America.
In early morning trading B of A's shares were 4%, to $8.07.
