The Charlotte, North Carolina-based bank said it will exercise the remainder of its option to buy more shares of the Chinese bank under the terms of its original investment. In June 2005, Bank of America bought a 9 percent stake in the Beijing-based bank for US$3 billion, and has since increased its stake to 10.75 percent through the exercise of options.

Following the close of the deal, which is expected later this month, Bank of America will hold about 44.7 billion China Construction Bank shares.

Bank of America spokesman Scott Silvestri said the company will not use any of the US$25 billion in government funds it has received for the purchase, the value of which he declined to give.

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