Aug 252011
 

In a vote of confidence in Bank of America (BAC) and the financial sector, Warren Buffett (Berkshire Hathaway) is investing $5 billion in a special issue of BAC preferred shares with a 6% dividend, and is also receiving warrants to purchase 700 million BAC shares at an exercise price of $7.14 each.  The warrants are excercisable in whole or part in the 10 years following the closing of the deal.  BAC’s closing price on August 25 was $7.65, or $0.51 above the exercise price of the warrants.

 Posted by at 10:25 am

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