BlackRock's top shareholder to divest entire stake worth $17 billion

PNC Financial, the largest shareholder of investment firm BlackRock, will divest its entire stake worth $17 billion in the world's largest asset manager,  the US bank said.

"We feel the time is now right," PNC Chief Executive Officer William Demchak said in a statement.

The bank holds a 22 percent stake, or 35 million shares, in BlackRock. PNC Financial will use the funds to pursue potential acquisitions, Demchak said.

"...will realize a substantial return on our investment, significantly enhancing our already strong balance sheet and liquidity, and leaving PNC very well-positioned to take advantage of potential investment opportunities that history has shown can arise in disrupted markets."

The coronavirus downturn has hit the Pittsburgh-based lender hard. It reported a 28 percent fall in net income for the first quarter, as loan-loss provisions increased almost fivefold to $914 million.

The stock of the company is down 40 percent year-to-date.

Following the announcement, shares of BlackRock slipped nearly 3 percent in after-market trading, while those of PNC Financial rose 5 percent.