(Bloomberg News) Bank of America Corp., the largest U.S. bank by assets, agreed to sell its remaining stake in BlackRock Inc. back to the world's biggest money manager for about $2.5 billion.
The bank will sell 13.6 million shares to New York-based BlackRock for $187.65 apiece, a 3.6 percent discount to the average closing price for the 15-day preceding period, BlackRock said today in a statement.
"There is a long history of collaboration between Bank of America Merrill Lynch and BlackRock that focuses on providing exceptional investment solutions for our respective clients," Chief Executive Officer Brian T. Moynihan said in the statement. "Our decision to monetize our stake in BlackRock will have no effect on our commitment to continuing this very successful partnership."
The proceeds may help Charlotte, North Carolina-based Bank of America with mounting claims from mortgage buyers, insurers and regulators as the firm seeks to resolve disputes over soured home loans and faulty foreclosures. Moynihan told investors this month his company still "struggles mightily" with the fallout from the bank's 2008 purchase of Countrywide Financial Corp.
The transaction is expected to close on June 1, BlackRock said. The stock will be retired after the deal, which will immediately boost earnings for BlackRock, the statement said.