Bank of America Aims to Shed a Slice of Pizza to Shore Up Capital
Bank of America (NYSE:BAC) CEO Brian T. Moynihan is under a commitment to sell about $50 billion in assets to raise capital for the beleaguered bank. Currently on the block is the bank’s stake in the largest Pizza Hut (NYSE:YUM) franchisee, NPC International.
The bank is reportedly in exclusive talks to sell the holding for upwards of $800 million, according to persons familiar with the negotiations. Two PE firms have joined to make the bid, but it appears debt financing for the deal is still to be arranged.
Bank of America (NYSE:BAC) said in April that PE holdings might have to be dissolved in view of larger capital cushions stipulated by the Basel Committee. So, keep your eyes open for more deals like this one with NPC International.
Bank of America’s stock (NYSE:BAC) is trading at $6.22 today, up 2.56%. Shares are 52.81% in one year. The stock’s trading range for the year is between $6.00 and $15.31.