Bank of America Corp.’s takeover of Countrywide Financial Corp. could be wrapped up as early as next week, but first it must clear one last hurdle – getting the OK from the struggling mortgage lender’s shareholders, the Associated Press reports.
Countrywide shareholders are scheduled to vote on the proposed buyout Wednesday morning during a special meeting at the lender’s headquarters in Calabasas, Calif.
The all-stock deal, valued in January at about $4 billion, is now valued at around $2.8 billion, reflecting a decline in Bank of America’s stock price over the last six months.
Countrywide’s board, which has unanimously backed the transaction, needs stockholders to vote a majority of the company’s outstanding shares in favor of the deal.
Legg Mason Capital Management Inc., which now holds the largest Countrywide stake at 14.7 percent, plans to vote its shares in support of the buyout, spokeswoman Mary Athridge said Tuesday.
