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.
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