Welcome, Guest! - or
Easy to remember!  »  VinNews.com

New York - Warren Buffett To Buy 700 Million Shares In Bank Of America

Published on: June 30, 2017 02:59 PM
By: AP
Change text size Text Size  
FILE - In this May 2, 2016, file photo, Berkshire Hathaway Chairman and CEO Warren Buffett is interviewed in Omaha, Neb. Buffett's Berkshire Hathaway is buying 700 million shares in Bank of America, making Buffett the largest shareholder in two of the nation's largest banks. (AP Photo/John Peterson, File)FILE - In this May 2, 2016, file photo, Berkshire Hathaway Chairman and CEO Warren Buffett is interviewed in Omaha, Neb. Buffett's Berkshire Hathaway is buying 700 million shares in Bank of America, making Buffett the largest shareholder in two of the nation's largest banks. (AP Photo/John Peterson, File)

New York - Warren Buffett’s Berkshire Hathaway said Friday it will amass a 700-million-share stake in Bank of America, making Buffett the largest shareholder in two of the nation’s largest banks.

Berkshire said that it will convert warrants it purchased in Bank of America back in 2011, when the bank was struggling following the financial crisis, into common shares in the bank. The stake in the bank will make Berkshire the largest shareholder in Bank of America, exceeding mutual fund giant Vanguard.

Advertisement:

Buffett said in his annual shareholder letter that he would convert his warrants in Bank of America to common stock if the bank were ever to raise its annual dividend above 44 cents a share, which the bank did this week. This week, the bank announced it would raise its annual dividend to 48 cents a share starting in the third quarter.

After the bank raises the dividend, Buffett will convert his warrants at a price of $7.14 a share, which is significantly below the stock’s current price of about $24 a share. If Buffett were to sell his acquired stake in the bank, Berkshire would walk away with a profit of $12 billion.

Buffett is also the largest shareholder in Wells Fargo, a stake that has drawn some controversy following Wells Fargo’s sales practices scandal.



More of today's headlines

Ballston, NY - A New York man who stopped at a convenience store to put air in his tires and ended up buying a lottery ticket has won a $1 million jackpot. State... Los Angeles, CA - A small twin-engine plane dropped out of the sky and exploded in flames on a busy freeway near a Southern California airport Friday morning, injuring...

 

Total1

Read Comments (1)  —  Post Yours »

1

 Jun 30, 2017 at 04:29 PM Anonymous Says:

shame he is not the occupant of the oval office

2

Sign-in to post a comment

Click here to sign-in.

Scroll Up
Advertisements:

Sell your scrap gold and broken jewelry and earn hard cash sell gold today!