Countrywide takeover up for vote
By Alex Veiga
Associated Press
LOS ANGELES — Bank of America Corp.'s takeover of Countrywide Financial Corp. could be wrapped up as early as next week, but first it must clear one last hurdle — getting the OK from the struggling mortgage lender's shareholders.
Countrywide shareholders are scheduled to vote on the proposed buyout this morning during a special meeting at the lender's headquarters in Calabasas, Calif.
The all-stock deal, valued in January at about $4 billion, is now valued at around $2.8 billion, reflecting a decline in Bank of America's stock price over the last six months.
Countrywide's board, which has unanimously backed the transaction, needs stockholders to vote a majority of the company's outstanding shares in favor of the deal.
Legg Mason Capital Management Inc., which now holds the largest Countrywide stake at 14.7 percent, plans to vote its shares in support of the buyout, spokeswoman Mary Athridge said yesterday.
It's widely expected that most other Countrywide shareholders will follow suit.
The deepening housing slump and lingering credit crisis have fueled deep losses at the nation's largest mortgage lender.
Countrywide lost about $1.6 billion in the last six months of 2007 and another $893 million in the first quarter of this year. It also faces numerous investigations and lawsuits related to its lending practices.