Investment By Bank of America
In 2005, Bank of America acquired a 9% stake in China Construction Bank for US$3 billion. It represented the company's largest foray into China's growing banking sector. Bank of America currently has offices in Hong Kong, Shanghai, and Guangzhou and sought to expand its Chinese business as a result of this deal.
On or about 5 June 2008, Bank of America purchased 6 billion H-shares for approximately HK$2.42 per share using call options under a formula in the initial acquisition agreement. Bank of America now holds about 25.1 billion H-shares, representing about 10.75% of CCB's issued shares. Bank of America may not sell the 6 billion shares that it purchased from Huijin using the call option before 29 August 2011 without prior consent of CCB. Bank of America still has the option to purchase additional shares.
In May 2009, speculation was raised that US$7.3 billion worth of CCB shares had been sold by BoA, to help bolster capital during stress testing.
On August 29, 2011 Bank of America announced it would sell approximately half its stake in CCB (13.1 billion shares worth about US$8.3 billion) to an undisclosed group of investors
Read more about this topic: China Construction Bank
Famous quotes containing the words investment, bank and/or america:
“The only thing that was dispensed free to the old New Bedford whalemen was a Bible. A well-known owner of one of that city’s whaling fleets once described the Bible as the best cheap investment a shipowner could make.”
—For the State of Massachusetts, U.S. public relief program (1935-1943)
“That strain again, it had a dying fall;
O, it came o’er my ear like the sweet sound
That breathes upon a bank of violets,
Stealing and giving odor. Enough, no more,
‘Tis not so sweet now as it was before.”
—William Shakespeare (1564–1616)
“The Miss America contest is ... the most perfectly rendered theater in our culture, for it so perfectly captures what we yearn for: a low-class ritual, a polished restatement of vulgarity, that wants to open the door to high-class respectability by way of plain middle-class anxiety and ambition.”
—Gerald Early (b. 1952)