CALABASAS, Calif. – Countrywide Financial Corp. reported a $422 million fourth quarter loss yesterday, but Bank of America said it still plans to go forward the acquisition of the nation’s largest mortgage lender.
"At this point, everything is a go to complete this transaction," Bank of America Corp. Chief Executive Ken Lewis said at an investor conference in New York. Lewis said the factors behind Countrywide's fourth-quarter loss were consistent with his bank's analysis of the lender's business and the agreed-upon buyout price
The Countrywide loss follows a third quarter loss of $1.2 billion, as the company has neared bankruptcy, only to be sold to BofA for $4.2 billion.
Countrywide shares closed up yesterday at $6.31, still far below the $7.75 a share BofA has agreed to pay. The spread between Countrywide's stock price and the value of BofA’s offer has remained unusually large -- around 20% below what each would be worth at the current price of BofA stock.
That has sparked concerns by some investors that BofA may back out of the deal or press for a lower price.
