BofA Sells BlackRock Stake Back to Company for $2.5 Billion |
| Bloomberg - May 19, 2011 |
Bank of America Corp., the largest U.S. lender by assets, agreed to sell its remaining stake in BlackRock Inc. back to the world’s biggest money manager for about $2.5 billion.
The bank will sell 13.6 million shares to New York-based BlackRock for $187.65 apiece, 3.6 percent less than the average closing price for the preceding 15 days, BlackRock said today in a statement. Bank of America acquired a 34 percent stake in BlackRock when it took over Merrill Lynch & Co. in 2009 and has been gradually reducing its holdings.
The proceeds may help Bank of America resolve mounting claims from mortgage buyers, insurers and regulators tied to defective home loans. Chief Executive Officer Brian T. Moynihan told investors this month his bank still “struggles mightily” with fallout from the 2008 purchase of mortgage lender Countrywide Financial Corp. Refunds and legal settlements dragged down first-quarter profit 36 percent to $2.05 billion.
Read Full Article from Bloomberg
- Posted: 2011-05-19 11:12:47
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