Bank of America to sell unit to Ameriprise for $1 billion

Bank of America Corporation (BoA), one of the world's largest financial institutions, yesterday agreed to sell part of its asset management unit of Columbia Management to Ameriprise Financial Inc (Ameriprise) for approximately $1 billion.

The long-term asset management business of Columbia which is considered for the sale includes around $165 billion in equity and fixed-income assets and the total amount to be paid is expected to be between $900 million and $1.2 billion based on actual closing pricing to be decided.

BoA chief financial officer, Joe Price said, "The acquisition of Merrill Lynch provided an opportunity to look at our entire portfolio of businesses with an eye toward strengthening our capital position while ensuring that we continue to offer the broadest possible solutions to our customers and clients as one of the world's leading financial services firms."

"We're pleased to reach an agreement with Ameriprise that is consistent with that goal," Price added.

The deal is expected to close in the spring of 2010, subject to customary clearances and regulatory approvals.

Minnesota-based Ameriprise, a spin-off of American Express, is a provider of financial advice and products.