Buffett becomes Bank of America's top shareholder

Business Leaders Reuters

(Copyright Reuters 2017)

Warren Buffett's Berkshire Hathaway Inc <BRKa.N> has become the largest shareholder of Bank of America Corp <BAC.N> by exercising its right to acquire 700 million shares at a steep discount, more than tripling an investment it made six years ago.

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Bank of America on Tuesday announced the exercise of the warrants, which gave Berkshire the right to buy the bank's shares for about $7.14 each. Bank of America shares closed down 14 cents at $23.58 on Tuesday.

The announcement was made after U.S. markets closed.

The exercise gives Berkshire a roughly 6.6 percent stake in the second-largest U.S. bank, based on an increase in the number of Bank of America shares outstanding, Reuters data show.

 

(Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)

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