Bank of America to Exercise Portion of China Construction Bank Option
CHARLOTTE, N.C., May 27 /PRNewswire-FirstCall/ -- Bank of America Corporation has given notice to China Construction Bank Corporation and SAFE Investment Limited (Huijin) that it intends to exercise part of the option it has to purchase further CCB common shares.
The option would be exercised under an agreement Bank of America has with Huijin reached when Bank of America first invested in CCB in June 2005.
Bank of America intends to purchase 6 billion H-shares on or about June 5, 2008 for approximately HK$2.42 per share under a formula in the agreement.
After the exercise, Bank of America would hold about 25.1 billion H-shares, representing about 10.75 percent of CCB's issued shares. Bank of America currently holds about 8.2 percent of the issued shares.
The 6 billion shares purchased from Huijin using the call option may not be sold until August 29, 2011 without prior consent of CCB. Bank of America has the option to purchase additional shares.
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Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, nearly 18,500 ATMs and award-winning online banking with nearly 25 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.
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