The horse-trading over Bank of America’s $9 billion stake in China Construction Bank has begun in earnest. Today, Temasek Holdings, a plausible buyer, signaled that CCB looks a bit pricey – surely a ploy by the Singapore sovereign wealth fund to make a stake in the Chinese bank a bit more affordable. Check out the DJN story by Nisha Gopalan: “BofA Approached Temasek To Buy CCB Stake-Sources.” After rising more than 10% in recent days, CCB shares slid 6.3% today in Hong Kong. The WSJ reports China’s sovereign wealth fund, China Investment Corp. (CIC), is unlikely to take some of Bank of America’s 16.7% stake in CCB – if only to avoid the perception that China’s government is helping bail out a troubled U.S. bank. by buying CCB shares well above where BofA acquired them. Indeed, the main reason BofA wants to flip its CCB shares at the earliest possible moment is to meet Washington, D.C.’s capital sufficiency criteria. Have a look at the WSJ piece: =WSJ UPDATE:Buyers Sought For Part Of BofA’s CCB Stake-Sources.”
China Investment Corp.
Posted by Gabriella Stern
on May 11, 2009
Bank Rescue Plan, Banks, China, Mergers & Acquisitions, Singapore, Sovereign Wealth Funds, Washington / Comments Off
Bank Rescue Plan, Banks, China, Mergers & Acquisitions, Singapore, Sovereign Wealth Funds, Washington / Comments Off
