Bank of America may not buy CCB rights offer
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Bank of America, the second largest shareholder of China Construction Bank (CCB), may not buy shares in the rights issue to be started today by the second largest Chinese lender.
The money-loosing bank, reporting a $7.3 million loss in the third quarter because of federal regulations on consumer accounts and credit card fees, will consider selling its rights, worth about an estimated $1 billion, to third parties. Bank of America currently holds 25.58 billion shares in state-owned CCB.
The rights issue will reduce Bank of America's holdings in CCB to 10.2% from 10.95%.
CCB said yesterday it will offer existing investors 0.7share for each 10 in Shanghai and Hong Kong markets. CCB plans to raise 61.7 billion yuan ($9.2 billion) through a 16.358-billion-share rights issue to replenish its capital base.
China's business press carried the story above on Wednesday. China.org.cn has not checked the stories and does not vouch for their accuracy.
