By Louis Liu:
Under the terms of the deal that Warren Buffett struck with the CEO of Bank of America (BAC) over several phone calls in August 2011, for $5 billion, Berkshire Hathaway (BRK.A), received (i) $5 billion of preferred shares of Bank of America that will pay a 6% annual dividend, and (ii) the warrants to buy 700 million common shares of Bank of America that can be exercised over the next 10 years at a price of about $7.
Warren Buffett made news again today, as Bank of America announced that Berkshire Hathaway would be buying $5 billion worth of its preferred stock. “Bank of America is a strong, well-led company, and I called Brian to tell him I wan... Read Post
Bank of America stock is up 22.6% this morning and its shares are up to $8.57, from $6.99 yesterday, after it was announced that Warren Buffett's Berkshire Hathaway would invest $5 billion in Bank of America. Bank of America's stock... Read Post
It has been a crazy week for Bank of America. Shares of Bank of America surged more than 25% in pre-market trading Wednesday on news that Warren Buffett's Berkshire Hathaway would purchase 50,000 preferred shares of the bank for $5 ... Read Post