Bank of America selling Itau Unibanco stake, expects to raise more than $4 billion with deal

BofA selling Itau Unibanco stake, expects $4B

NEW YORK — Bank of America Corp. is selling its stake in the Brazilian bank Itau Unibanco Holdings S.A. in a deal expected to raise more than $4 billion.

The company said Wednesday it is selling 188.4 million of Itau Unibanco’s preferred shares, an 8.4 percent stake, and 56.4 million common shares, representing a 2.5 percent stake.

The moves will help Bank of America meet a commitment to the U.S. government to raise $3 billion in new capital, Bank of America spokesman Jerry Dubrowski said.

As a part of its agreement in December to repay the $45 billion in loans it received from the government under the Troubled Asset Relief Program, Bank of America promised to have agreements in place to raise the capital by the end of June, Dubrowski said.

The sale has not been priced yet. But he said the deal should raise more than $4 billion before expenses.

It does not signal that Bank of America is pulling out of Brazil or Latin America, Dubrowski said. “Brazil remains an important market for us.”

Bank of America shares closed up 36 cents, or 2.3 percent, at $16.31.