Bank of America Corp will exercise a $1.86 billion option to buy additional shares of China Construction Bank Corp.

The Charlotte, North Carolina-based bank said on Tuesday that it has notified the bank and SAFE Investment Limited (Huijin) it intends to exercise part of the option it has to purchase additional common shares.

Bank of America will purchase 6 billion H-shares around June 5 worth about HK$2.42 (31 cents). It will hold about 25.1 million H-shares worth about $7.75 billion. That represents 10.75 percent of all CCB's issued shares.

The 6 billion shares purchased may not be sold until August 29, 2001 without consent of CCB.

Shares of Bank of America rose 25 cents, or 0.74 percent to $34.19