Friday, 9 October 2015
Last updated 13 hours ago
Feb 14 2008 | 1:00am ET
London hedge fund SRM Global is reiterating—and reinforcing—its opposition to Bank of America’s bid for the country’s largest mortgage lender.
In a filing with the Securities and Exchange Commission yesterday, SRM said it had boosted its stake in Countrywide Financial Corp., in spite of seeing about half of its assets evaporate in the past three months. SRM now owns 5.48% of Countrywide, up from 5.19% earlier this month.
The hedge fund, run by Jon Wood, also sent another letter to Countrywide’s board of directors, arguing that “the merger transaction with Bank of America in not in the best interests of its shareholders.” Wood also complained that Countrywide management has refused to meet with him.
BofA’s $4.6 billion stock offer is worth about $8 per share, a roughly 15% premium to its closing price yesterday. But SRM argues that those terms value Countrywide at less than half its book value.
Oct 7 2015 | 4:57am ET
Charity A Leg To Stand On (ALTSO) will hold its 12th Annual Hedge Fund Rocktoberfest – NYC on October 15 and its 4th Annual Rocktoberfest - Chicago on October 22. Read more…