NEW YORK - Bank of America Corp has struck a deal to sell a long-term asset management business, part of its Columbia Management division, to Ameriprise Financial Inc for about $1 billion.
The bank expects to close the sale of the unit, which had $165 billion in equity and fixed income assets under management at the end of June, next spring for between $900 million and $1.2 billion.
Bank of America said it is still considering alternatives for the short-term asset management business at Boston-based Columbia.
The bank has been seeking to sell its Columbia division since earlier this year, as it sought to raise capital to offset rising losses on mortgages and other loans.
The Charlotte, North Carolina-based bank inherited a stake in asset manager BlackRock Inc through its Jan. 1 acquisition of Merrill Lynch.
BlackRock had been interested in buying pieces of Columbia, according to some media reports, but the New York-based company in June acquired British bank Barclays Plc's investment arm BGI for $13.5 billion.
Bank of America shares were up 15 cents in premarket trading at $17.31. Ameriprise was up $1.01 at $33.35. (Reporting by Elinor Comlay; Editing by Derek Caney)