To: Hawkmoon who wrote (78529 ) 8/25/2011 8:41:15 PM From: 2MAR$ Read Replies (2) | Respond to Buffet & BofA replay ...Buffet had recieved a phone call from Obama seeking advice the other day on the economy nothing divulged of the content , the rumor yesterday of a JPM takeover was wrong but something was up ...BAC employs 280,000 people and represents 600pts down on the market so you know they've been working out something here the last 2wks <g9:10AM Bank of America: Berkshire Hathaway to invest $5 bln in Bank of America ( BAC 6.99 : BAC reached an agreement to sell 50,000 shares of Cumulative Perpetual Preferred Stock with a liquidation value of $100,000 per share to Berkshire Hathaway in a private offering. The preferred stock has a dividend of 6% per annum, payable in equal quarterly installments, and is redeemable by the company at any time at a 5% premium. In conjunction with this agreement, Berkshire Hathaway will also receive warrants to purchase 700,000,000 shares of BAC common stock at an exercise price of $7.142857 per share. The warrants may be exercised in whole or in part at any time, and from time to time, during the 10-year period following the closing date of the transaction. The aggregate purchase price to be received by Bank of America for the preferred stock and warrants is $5 billion in cash. BAC CEO Brian Moynihan says: "I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy."
