Berkshire To Exercise Warrants To Buy 700 Mln Shares Of Bank Of America Stock

(RTTNews) - Billionaire Warren Buffett's Berkshire Hathaway Inc. (BRK-B, BRK-A, BRKa)said that it will exercise its warrants to acquire 700 million shares of Bank of America Common Stock at the exercise price of $7.142857 per common share. The warrants will be exercised when the bank raises its quarterly dividend to 12 cents a share from 7.5 cents a share, beginning in the third quarter.

As per the terms of the warrants, Berkshire expects to use its $5 billion of Bank of America Corporation 6% Preferred Stock that it currently owns as the consideration to acquire the common shares.