Bank of America sells stake in HCA

 
Marion Dakers
BANK of America said yesterday it has agreed to sell its stake in HCA back to the hospital firm in a move that will raise the firm $1.5bn (£950m).

Bank of America is attempting to cut $5bn from its annual costs and bolster its cash pile as part of a restructuring.

"The transaction is consistent with our strategy of selling non-core assets, building liquidity and strengthening the balance sheet," said a spokesman for Bank of America.

The deal for more than 80m HCA shares sent the hospital firm’s stock up almost 12 per cent yesterday.

Bank of America originally inherited the stake through its purchase of Merrill Lynch in 2008.