CALABASAS, Calif. – Shares in ailing home lender Countrywide Financial Corp. surged more than 20% in after-hours trading last night after Bank of America announced a $2 billion equity investment in the firm. Under terms of the deal, BofA, which had discussed a possible acquisition of Countrywide in the past, acquired $2 billion in the form of nonvoting, convertible preferred stock yielding 7.25% annually. The shares can be converted into common shares of Countrywide at $18 per share, with certain restrictions. Countrywide shares, which had been battered the past two weeks, jumped more than 20% to $26.25 in after-hours trading. Before Countrywide's announcement, the shares had closed the regular session up three cents to $21.82.
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