Countrywide Doubters Not Swaying B of A

American Banker (03/24/08) P. 1; Davis, Paul
While there is much talk about Bank of America's proposed $4 billion acquisition of Countrywide Financial Corp. due to rising foreclosures and allegations of improper lending practices, BofA President, Chairman and CEO Kenneth Lewis says the deal is moving forward. "The price is right, and the deep due diligence we performed confirmed our belief that there is great long-term value embedded in Countrywide's business," wrote Lewis in his annual letter to shareholders. However, the $236 million acquisition of Bear Stearns Cos. by JPMorgan Chase & Co. leads some analysts to believe BofA could attempt to reprice the acquisition, with the price cut by up to 30 percent, according to Egan-Jones Rating Co. founding principal Sean Egan. NAB Research LLC's Nancy Bush says BofA could encounter difficulty in justifying the need for repricing, especially since it tapped Countrywide President and COO David Sambol to head the new mortgage business; but she insists the deal would be scrapped if evidence of fraudulent activity by Countrywide is brought to light.