Bank of America is in talks to sell a major portion of Merrill Lynch’s real estate portfolio to the Blackstone Group for up to $1 billion, a person briefed on the matter told DealBook on Tuesday, as the bank seeks to raise additional capital. The holdings in question include a variety of commercial properties and real estate stakes around the world, said this person, who spoke on condition of anonymity because the talks were continuing and might fall apart. A sale would be the latest effort by Bank of America to sell noncore assets to help shore up its balance sheet. Bank of America’s stock has slumped 25.7 percent over the last month, propelled in part by investor fears that the bank would need to sell additional shares.
Bank of America in talks with Blackstone over Merrill Real Estate
August 16, 2011, 5:28pm
Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio
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Jacob Gaffney is formerly Editor-in-Chief of HousingWire and HousingWire.com. He previously covered securitization for Reuters and Source Media in London before returning to the United States in 2009. While in Europe for nearly a decade, he covered bank loans and the high yield market, in addition to commercial paper, student loan, auto and credit card space(s).see full bio