Question:

Can an expert explain BAC purchasing CFC?

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There seem to be lots of questions about BofA purchase agreement of CFC mainly about What will the return per share to CFC owners be after buyout? Could someone do the math?

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  1. I'm not an expert, but I've read about the buyout. And I hate to tell you, but I don't think anyone knows exactly how much Countrywide is going to sell for.

    When the deal was announced, Bank of America said it was trading its stock for Countrywide's at a rate of 0.1822 BAC shares for every one CFC share. That means you'd get one BAC share for about every 5.5 CFC shares, making one CFC share worth about $5.75 at today's open price for BAC.

    But those numbers are six months old at this point. And Bank of America didn't know the credit situation was going to get this bad back then. So you may get even less for your CFC shares. Or BAC could rally unexpectedly and make your shares worth a lot more. Good luck.  

    Countrywide is asking for shareholder approval at a meeting on June 25. Let us know how much you get for your shares.

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