OMAHA, Neb. – Warren Buffett's company is now Bank of America's largest shareholder.
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Bank of America said Tuesday that Berkshire Hathaway had exercised its warrants to buy 700 million shares of the bank. Berkshire received the warrants in 2011 when Buffett invested $5 billion in the bank.
The shares, which are worth roughly $16.5 billion today, give Berkshire control of about 6.5 percent of the bank based in Charlotte, North Carolina.
Berkshire had been receiving $300 million a year in interest on its preferred shares. Buffett decided to trade that for common shares because Bank of America is now paying a dividend of 48 cents per share annually.
Buffett's Omaha, Nebraska-based conglomerate is also a major shareholder in Wells Fargo, American Express and Goldman Sachs.