Bank of America agrees to acquire struggling lender Countrywide

Source: Exec Digital USA

Date :11/01/2008 03:56:34

Bank of America Corp. said on Friday it agreed to acquire Countrywide Financial Corp in an all share stock valuing the biggest U.S. mortgage lender at $4 billion.

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.

Domestic mortgage

The purchase will make Bank of America the nation's largest mortgage lender and loan servicer.

”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.

The agreement has been approved by Bank of America's board of directors and Countrywide's board of directors and is subject to approval by Countrywide's shareholders and customary regulatory approvals, said BofA.

The transaction is expected to close in the third quarter.

January 11, 2008