Bank of America is in the final stages of selling at least half of its stake in CCB, according to CNBC’s Kate Kelly.
Kelly says BofA will sell around $8.5 billion of its 10% stake in China bank CCB, which is valued at ~$17 billion.
Earlier the firm planned to sell all of it. Word was those plans were stalled because BofA had trouble selling it.
On August 22, the President of CCB announced that Bank of America would keep at least half of its stake.
Kelly says the deal could close as soon as Monday, though it’s unknown to whom BofA will sell, or how much the firm will get for the stake.
The deal is motivated by the Basel III capital requirement deadline approaching in 2013, according to Kelly.
Bank of America is up on the news. It’s currently trading at $7.84, up 2.48% from yesterday.
This is the second positive capital event for the firm in 2 days. Yesterday Warren Buffett invested $5 billion in Bank of America.