Bank of America sold Columbia Management business to Ameriprise



image Bank of America Corp’s deal to sell part of its Columbia Management business for about $1 billion is a boost for its effort to unload unwanted assets and raise capital, but the low price suggests it is still facing a buyers’ market.

The bank said on Wednesday it expects to close the sale of the Columbia Management’s long-term asset management business to Ameriprise Financial Inc next spring for between $900 million and $1.2 billion in cash. The business duplicates similar operations at newly-acquired Merrill Lynch.

A Bank of America spokesman did not dispute Cracchiolo’s description of the bidding process but declined to comment further. Bank of America shares ended down 1.4 percent at $16.92 on the New York Stock Exchange, while Ameriprise finished up 12.3 percent, also on the NYSE.

ECJ




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