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Bank of America Buys Countrywide for $4B

January 11, 2008

Bank of America said Friday it will purchase mortgage lender Countrywide Financial in an all-stock deal worth approximately $4 billion. Each share of Countrywide will be exchanged for 0.1822 shares of Bank of America. “Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation’s premier lender to consumers,” Bank of America Chairman and Chief Executive Officer Kenneth D. Lewis said in a statement. The deal is expected to close in the third quarter of this year, and integration of the two companies would not occur until 2009, Bank of America said. Countrywide is considered to be the biggest, or at least one of the biggest, victims of the subprime mess. When the bottom fell out in the mortgage market, it took Countrywide with it. Shares of Countrywide are down more than 81% from a year ago. Read more at foxbusiness.com

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Written by editwizard · Filed Under Your Money