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American Express Co. confirmed this week it might sell its stake in Industrial and Commercial Bank of China, reports CardLine Global sister publication American Banker. Reports had surfaced in January that AmEx could gain about US$500 million (375.9 million euros) by selling its whole stake in ICBC, but it could not begin to do so until April, when a restriction on selling up to half the shares expires (CardLine Global, 22 Jan). AmEx now says that the lock-up for its shares "will expire in two equal installments on April 28, 2009, and October 20, 2009." In a joint announcement with ICBC, AmEx said that "depending on market conditions, the company may sell its ICBC shareholding at some point after the lock-up period and will explore all potential methods of sale that would maximize value and minimize market impact, with a preference for a private sale to investors." The estimated fair value of its stake last year was $544 million, AmEx said in its annual report. Selling the stake would not affect AmEx's "strategic cooperation" with ICBC, which has issued more than 600,000 AmEx-branded cards in China since 2004, the company said. In a statement, Kenneth I. Chenault, AmEx chief executive and chairman, called ICBC "one of our most important card-issuing partners" and said "we look forward to expanding our partnership in the years to come."
