Washington Post (01/11/08) P. D1; Tse, Tomoeh Murakami; ElBoghdady, Dina
Bank of America is holding talks with Countrywide Financial to acquire the nation's largest mortgage lender, people close to the situation told the Wall Street Journal. The sources suggested a deal could emerge "very soon" but added that there is a possibility it could be delayed or even fall through. A deal has been rumored for months, as Bank of America made a $2 billion equity investment in Countrywide in August; and Friedman, Billings, Ramsey Group analyst Paul Miller believes the bank could pick up the Calabasas, Calif.-based company at a bargain, considering the mortgage lender may be close to bankruptcy. Investors welcomed the news, pushing up shares in Countrywide 52 percent, or $2.64, to a closing price of $7.76 in Thursday trading.
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