Skip navigation
Watchlist Sponsored By :


Current DateTime: 11:46:36 30 Nov 2009
LinksList Documentid: 24355697
  • The Cost of True Love

      In the popular holiday song "The 12 Days of Christmas," the cost of gifts - from the 12 drummers drumming to a partridge in a pear tree - is quite pricey.

  • Runway Angels

      The superbowl of fashion shows, models walk down the runway at the 2009 Victoria's Secret Show.

  • Smartphone Guide

      Here's a need-to-know guide to nine devices, based on features, price, network and platform.

FEATURED QUIZZES


Current DateTime: 11:46:36 30 Nov 2009
LinksList Documentid: 33793611
  • Test Your Google IQ

      How much do you know about the most popular search engine in the world? Take the following quiz and find out.

  • How Well Do You Know Your Bird?

      Let's talk turkey. Test your turkey knowledge and perhaps pick up a bit of trivia to trot out at your holiday meal.

  • A Healthier & Wealthier You

      Take the following quiz and find out how much you know about the impact of obesity on the health of the U.S. economy.


Current DateTime: 11:46:37 30 Nov 2009
LinksList Documentid: 24890560
  • Holiday Central

      There are plenty of reasons to believe that this Christmas holiday season will not be as bad for retailers as last year.

  • Winterizing Your Portfolio

      If 2009 was the winter of our discontent, will 2010 be a winter wonderland for investors? A lot depends on the recovery—or lack thereof.

  • Investor's Guide to Real Estate

      Some even say the long-awaited recovery is here. Regardless, buyers and sellers alike can profit from our guide.

powered by digg
Hedge Fund Ups Countrywide Stake, Attacks Merger
By: Reuters | 13 Feb 2008 | 06:22 PM ET
Text Size

A large Countrywide Financial shareholder opposed to the company's takeover by Bank of America said on Wednesday it has increased its stake in the largest U.S. mortgage lender to 5.48 percent from 5.19 percent.

AP

SRM Global, a Cayman Islands-registered hedge fund run by British investor Jon Wood, also accused Countrywide management of repeatedly rejecting its requests for a meeting since late December. Bank of America announced the acquisition on Jan 11.

"The merger transaction with Bank of America is not in the best interests of its shareholders," the fund said in a Feb. 13 letter to Countrywide's board, Chief Executive Angelo Mozilo and Chief Operating Officer David Sambol.

Under the merger agreement, Countrywide shareholders are to receive 0.1822 of a Bank of America share for each share they own. This values Countrywide at about $4.6 billion, or $7.89 per share.

SRM said the terms value Countrywide at less than half of its book value, and that the board rushed to sell rather than consider alternatives such as remaining independent or conducting an auction.

The fund's 31.7 million share stake is worth roughly $225 million, based on Countrywide's Wednesday closing price, and grew from 30 million shares two weeks ago.

Countrywide did not immediately return requests for comment. SRM disclosed its increased stake and the letter in a U.S. Securities and Exchange Commission filing.

According to a Bank of America filing earlier Wednesday with the SEC, Countrywide told its advisers prior to the merger that it faced the prospect of "financial distress" had it not agreed to be acquired by the second-largest U.S. bank.

Countrywide shares [CFC  Loading...      ()   ]closed Wednesday up 18 cents at $7.08 on the New York Stock Exchange. Bank of America shares [BAC  Loading...      ()   ] rose 51 cents to $43.33 on the Big Board.

SRM has also played an active role in the possible rescue or nationalization of ailing British lender Northern Rock

Copyright 2009 Reuters. Click for restrictions.
Tools:
Print EmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • Ever wished your cab driver would stop chatting and just get to where you're going? Well, that moment is closer than ever.
  • UPS truck
  • UPS is giving its customers the option to offset its carbon emissions when sending a package.
  • Romania's presidential campaign has been rocked by a video that may show the president striking a 10-year-old boy.
  • alligator
  • Raising alligators is hard work, and the fickle taste of rich consumers has just made it much harder, says the NY Times.
  • A recent issue of ESPN Magazine was one of its top sellers ever, and it only took scantily clad athletes to make it happen.
  • The continued real estate boom in China is partially fueled by a generational flood of newlyweds.
ADD COMMENTS
Remaining characters


Current DateTime: 09:11:53 30 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 11:44:56 30 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 11:00:11 30 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 11:23:57 30 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters