Countrywide will cease to exist... at $7.16.
NEW YORK (MarketWatch) -- Bank of America Corp. said on Friday it's purchasing Countrywide Financial Corp. for $4 billion, effectively doubling down on a previous investment in the troubled firm and catapulting the buyer into the top spot among mortgage lenders and loan servicers in the U.S.
The stock-swap deal will put an end to the independence of the troubled California lender headed by Angelo Mozilo, and represents an increase from the Charlotte, N.C., bank's August investment of about $2 billion.
"We believe this is the right decision for our shareholders, customers and employees," said Mozilo, Calabasas, Calif.-based Countrywide's chairman and chief executive, in a statement.
Terms call for Countrywide stockholders to receive 0.1822 of a share of Bank of America stock in exchange for each share they own.
At Thursday's close, that values Countrywide at $7.16 a share -- lower than the $7.75 closing price after news leaked of a possible deal.