i hope i'm not the only one laughing when reading the article
Temasek to buy CCB shares
TEMASEK Holdings will take up Bank of America's entire entitlement in China Construction Bank's rights issue, a spokesman for the Singapore state investor said on Thursday.
CCB, China's No 2 lender, plans to raise up to 61.6 billion yuan (S$11.9 billion) in Asia's biggest rights issue outside Japan to shore up capital after a lending binge in 2009.
BoA, which owns just under 11 per cent of CCB, has been looking for a buyer for its rights entitlement as it could be politically difficult for a bailed-out US bank to pump more money into a Chinese bank, sources have said.
'We confirm we will be taking up BoA's rights entitlement in CCB,' a Temasek spokesman told Reuters.
By taking over BoA's rights, Temasek, which already owns about 6 per cent of CCB, will have to invest an additional US$1.5 billion to US$1.6 billion in the Chinese lender.
CCB is offering 0.7 shares for every 10 existing shares at 3.77 yuan per A-share and HK$4.38 per H-share.
The price of the rights, first proposed in April, is about 43 per cent below CCB's Hong Kong-listed H shares that currently trade around HK$7.72 per share.
BoA, CCB's second-largest shareholder, has already indicated that it is unlikely to participate in the rights, news reports have said. A spokesman for Bank of America declined comment. -- REUTERS
Temasek to buy CCB shares
TEMASEK Holdings will take up Bank of America's entire entitlement in China Construction Bank's rights issue, a spokesman for the Singapore state investor said on Thursday.
CCB, China's No 2 lender, plans to raise up to 61.6 billion yuan (S$11.9 billion) in Asia's biggest rights issue outside Japan to shore up capital after a lending binge in 2009.
BoA, which owns just under 11 per cent of CCB, has been looking for a buyer for its rights entitlement as it could be politically difficult for a bailed-out US bank to pump more money into a Chinese bank, sources have said.
'We confirm we will be taking up BoA's rights entitlement in CCB,' a Temasek spokesman told Reuters.
By taking over BoA's rights, Temasek, which already owns about 6 per cent of CCB, will have to invest an additional US$1.5 billion to US$1.6 billion in the Chinese lender.
CCB is offering 0.7 shares for every 10 existing shares at 3.77 yuan per A-share and HK$4.38 per H-share.
The price of the rights, first proposed in April, is about 43 per cent below CCB's Hong Kong-listed H shares that currently trade around HK$7.72 per share.
BoA, CCB's second-largest shareholder, has already indicated that it is unlikely to participate in the rights, news reports have said. A spokesman for Bank of America declined comment. -- REUTERS
