Bank of America to Invest$2 Billion in Countrywide
By VALERIE BAUERLEINAugust 22, 2007 5:47 p.m.
Bank of America Corp. is making a $2 billion equity investment in Countrywide Financial Corp., the embattled mortgage giant, according to people familiar with the situation.
Bank of America will purchase $2 billion worth of preferred Countrywide stock yielding 7.25%, and that can be converted into common stock at $18 a share, those people said.
Write to Valerie Bauerlein at valerie.bauerlein@wsj.com
We reported here that we thought CFC was being sustained to prepare for a sale. The investment by BAC of $2.0 billion in preferred stock says that BAC feels its investment is safe in the short term, and they can convert the investment at $18 a share.
Trading is heavy in the after market, CFC closed at $21.82 now trading at $25.65.