Deals
SunTrust Sells 93-Year Coke Stake as Crisis Hangover Ebbs
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SunTrust Banks Inc., the lender that invested in Coca-Cola Co. in 1919, sold most of that stake for a $1.2 billion gain to help cover the costs of bad loans and put other lingering effects of the financial crisis behind the firm.
The transaction will boost third-quarter net income by about $750 million, or $1.40 a share, the Atlanta-based bank said yesterday in a statement. Proceeds of the sale will help the lender set aside $375 million to fund the repurchase of faulty mortgages and absorb a $250 million pretax charge tied to the writedown of soured loans.