2007-11-29wsj.com

"Bank of America's $2 billion investment isn't quite as shaky as it may look at first glance. The bank invested in Countrywide nonvoting convertible preferred stock, which can be converted into common stock at a price of $18 a share. But until that option is exercised, the investment operates much like a convertible bond -- paying a 7.25% dividend, or $145 million annually." -- Well, at minimum, we know the conversion isn't worth anything anymore. But will BofA swallow up CW? It could happen.



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