We call it resolution to a financial crisis, they call it less than half book value.
Countrywide Holder Calls Bank of America Bid Too Low (Update2)
By David Mildenberg
Jan. 31 (Bloomberg) -- Bank of America Corp.'s offer of about $4 billion for Countrywide Financial Corp., the biggest U.S. home lender, is too low, according to one of the mortgage company's biggest stakeholders.
``The merger agreement does not provide sufficient value'' to shareholders of Calabasas, California-based Countrywide, according to a regulatory filing today by SRM Global Fund, a private investment firm based in the Cayman Islands. SRM, which controls a 5.2 percent stake, plans to vote against the merger and wants to contact the company and other shareholders.
SRM's filing may revive doubt that the takeover will be completed on the original terms. Investors have speculated Bank of America might demand an even lower price or walk away because of continued losses at Countrywide. The bank affirmed earlier this week that it will proceed with the purchase.
``The board of Countrywide and its advisers should fully explain to shareholders the reasons why they have agreed to recommend the transaction to shareholders at less than half of the company's book value,'' SRM said in a statement. ``The company is strong and will rapidly return to profit on a stand- alone basis.''
2 comments:
shiat, come on guys, you made a bad bet, suck it up and move on. who is buying that toxic company that can actually close on the transaction? be glad you are getting some money out and shut the f*&k up.
That's what I'm sayin'...
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