Bank of America to buy Countrywide for $4 billion
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| Posted
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Fri, 11 Jan 2008 12:15:05 GMT |
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Reuters |
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NEW YORK (Reuters) - Bank of America Corp on Friday said it agreed to acquire struggling mortgage lender Countrywide Financial Corp for about $4 billion in stock, a move that could help avert one of the biggest collapses in the U.S. housing crisis.Countrywide shareholders would receive 0.1822 of a Bank of America share in exchange for each of their shares. The transaction values Countrywide at $7.16 per share, a 7.6 percent discount to the Thursday closing price of the company's stock.Bank of America expects the transaction to close in the third quarter, not affect earnings per share in 2008, and add to earnings per share in 2009, excluding merger and restructuring costs.(Reporting by Jonathan Stempel; Editing by John Wallace)
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