PNC and Bank of America sell BlackRock shares

NEW YORK (BestGrowthStock) – Bank of America Corp (BAC.N: ) and PNC Financial Services Group (PNC.N: ) said on Monday they are selling a large part of their stakes in BlackRock (BLK.N: ), the world’s largest asset manager.

BlackRock said it priced an offering of just over 51 million shares — more than previously expected — for $163 each.

That is a 3.6 percent discount to BlackRock’s closing share price on Monday at $169.09.

Bank of America is selling 43.6 million BlackRock shares, or about $7.1 billion; and PNC is selling 7.5 million shares, worth about $1.2 billion.

In the statement on Monday, BlackRock said Bank of America will sell an additional 2.5 million shares to an institutional investor at the offering price.

BlackRock, which oversees about $3.4 trillion in client assets, last week said it planned to offer some 42 million shares to allow the two banks to reduce their stakes in the New York-based firm.

According to an earlier offering document, Bank of America planned to offer 34.5 million shares, reducing its stake in BlackRock to as little as 12.6 percent of the company from 33.9 percent, previously.

Analysts had been expecting the banks to trim their holdings in BlackRock. The new international Basel III capital requirements effectively prevent banks from holding big stakes in other companies as part of a series of reforms intended to prevent another financial crisis.

Spokesmen for PNC and Bank of America were not immediately available to comment.

BlackRock shares fell 2.3 percent on Monday.

Bank of America, Morgan Stanley (MS.N: ) (Read more about the money market today. ) and Barclays (BARC.L: ) are joint book-running managers for the offering.

(Reporting by Elinor Comlay; Editing by Richard Chang, Bernard Orr)

PNC and Bank of America sell BlackRock shares