NEW YORK (
Bank of America
PNC Financial Services
could make a combined profit of $8.32 billion from the sale of
Late Monday, BlackRock priced 51.1 million shares at $163 a share.
Investor demand for the offering was higher than expected. Bank of America plans to sell 43.5 million shares - 9 million more than the Charlotte, N.C.-based institution originally plannedl. PNC offered the expected 7.5 million shares.
Bank of America has also granted the underwriters a 30-day option to purchase an additional 5.2 million shares of BlackRock's common stock to cover over-allotments, it said Tuesday.
Bank of America also said it plans to sell an additional 2.5 million shares of BlackRock's stock to one unnamed institutional investor in a direct placement registered with the
Securities and Exchange Commission
Banks are looking to dispose of assets as shore up capital. Bank of America in particular, under an agreement with U.S. Treasury Department when it returned capital from the Troubled Asset Relief Program last December, agreed to raise ultimately $4 billion through asset sales through the end of this year.
Industry observers say that the big institution is likely to have trouble meeting that deadline and may issue
in order to meet the requirement.
BlackRock will not receive any proceeds from the offering.
BlackRock shares were falling 2.1% at market open to $165.52. Bank of America shares were rising marginally 0.2% to $12.62. PNC shares were down 0.5% to $57.39.
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