American Express Co. has told Industrial & Commercial Bank of China Ltd. it will keep its stake in the lender after entering into a contract to hedge fluctuations in the stock price, Reuters reported Wednesday citing a source with direct knowledge of the matter.
ICBC's share price has fallen 5.7% in the past two days after Goldman Sachs Group Inc. executed a $479 million block deal.
There has been speculation that American Express was paring its exposure to ICBC, but two sources close to the deal told Reuters that the financial services company was only locking in the value of its ICBC holdings through a hedging contract structured by Goldman.
American Express didn't immediately respond to a request for comment, while ICBC wasn't available for immediate comment, Reuters reported.
