Doubts Over Deal Hit Countrywide Shares

``Stocks in takeover deals regularly trade below the offer price because of the risks that plans could fall through. The gap, known as the arbitrage spread, is wider than usual in this case, though.

Also see Countrywide Deal Has $160 Mln Termination Fee.

"The Street thinks the deal will have to be re-priced" lower, said Paul J. Miller Jr., an analyst at Friedman, Billings, Ramsey & Co. He has argued since the deal was announced that there is a high risk the price will be renegotiated if the mortgage market continues to worsen and Countrywide losses exceed Bank of America's expectations. The purchase is due to be completed in the third quarter.'' -- DOES 30 BILLION OF PAY OPTION LOANS HAVE POSITIVE VALUE?