Goldman Sachs sells $1.9B stake in China's ICBC

[June 02, 2009]  HONG KONG (AP) -- Goldman Sachs has raised more than $1.9 billion after selling part of its stake in Industrial & Commercial Bank of China as the U.S. investment firm seeks to repay government bailout funds.

Goldman unloaded more than 3.3 billion Hong Kong shares in ICBC, China's biggest lender, at $4.88 Hong Kong dollars each, according to a sales sheet reviewed Tuesday by The Associated Press.

That represents about 3.7 percent of the Chinese bank's Hong Kong-listed shares and 0.9 percent of its total outstanding shares.

It's also about a fifth of Goldman's some 4.9 percent holding in ICBC. The remaining 80 percent of its stake is locked up until at least April 2010 under an agreement between Goldman and ICBC earlier this year.

The Wall Street firm was among the first financial institutions to receive money from the U.S. Treasury Department late last year under a government stock purchase program designed to help banks survive the credit crisis and improve lending.

But banks have chafed against rules on the bailout money, including limits on executive compensation. Goldman, like other bailout recipients, has applied to repay the money. Goldman's portion amounted to $10 billion.

A Goldman representative in Hong Kong declined to comment.

ICBC shares have surged in recent months but closed down 4.1 percent at HK$4.9 in Hong Kong Tuesday.

[Associated Press]

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