Berkshire To Change Bofa Preferred Inventory For Seven-Hundred Million Common Stocks

The purchase included warrants to acquire 700 million common shares at $7.14 each, less than one-third Thursday’s closing price of $24.32.
Vanguard Group, which is currently BofA’s biggest shareholder, holds 6.6 percent stake, or about 652 million shares in the company.
Warren Buffett’s Berkshire Hathaway said it would exercise its warrants to buy 700 million common shares of Bank of America, making it the largest shareholder of the lender.
Berkshire said it would exercise its warrants after the bank raises its quarterly dividend to 12 cents per common share.
The second-largest U.S. bank also announced a $12 billion stock buyback plan.

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