BAC going to be a gapper in the morning.
UPDATE: Bank of America Shares Sink On Common Stock OfferingLast update: 5/19/2009 7:44:58 PM(Updates status of deal and pricing.)
By Joe Bel Bruno and Lynn Cowan
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Bank of America Corp. (BAC) shares sank in after-hours trading Tuesday after the banking giant sold more than 800 million common shares, according to a person familiar with the situation. Shares of the Charlotte-based bank fell 3.4% to $10.88 after the closing bell, adding to a 4.1% drop during the regular session. Bank of America sold 825 million shares at $10 apiece, according to the person familiar with the deal. It was unclear what type of structure the deal took and whether it included a conversion of any of the bank's privately held preferred shares. Bank of America declined to comment. The deal was first reported by business news network CNBC. Earlier this month, the bank was asked to raise its Tier 1 common equity level by $34 billion as a result of a government stress test of the country's largest banks. In a presentation to investors after the stress test on May 7, Bank of America said it would raise $17 billion in common equity through a combination of an at-the-market issuance program and exchanges of preferred shares to common stock for institutional investors. It plans to raise the remainder of its Tier 1 requirement through asset sales and other actions. -By Joe Bel Bruno and Lynn Cowan, Dow Jones Newswires; 201-938-4047; joe.belbruno@dowjones.com (END) Dow Jones NewswiresMay 19, 2009 19:44 ET (23:44 GMT)
My post are opinions only - Please do your own due diligence before investing.
