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’Bank of America grabs Countrywide
So Bank of America has come to the rescue of the moribund Countrywide, taking over the company in a $4bn all-stock transaction pitched at a discount to Thursday’s close.
Countrywide shares slumped on Thursday on whispers that the company was on the verge of bankruptcy before soaring more than 50 per cent as talk of a deal with BoA leaked.
BofA closes in on Countrywide
Bank of America is nearing a deal to buy Countrywide Financial, the troubled US home mortgage lender. Talks between BofA and Countrywide have been sporadic and first led to a $2bn equity investment in Countrywide by BofA in August. However,
Countrywide shares plunge on fresh fears
Shares in Countrywide on Wednesday dropped to their lowest level in more than a decade as the troubled US mortgage lender said that foreclosures and late payments had risen to their highest levels on record last month.
Monoline bailouts skewered on Countrywide crash
Rumours that American mortgage giant Countrywide was bust on Tuesday proved to be unfounded. That, of course, didn’t stop the share price sliding 34 per cent.
Obviously that’s bad for Countrywide. But Yves Smith at Naked Capitalism points us towards another consequence of the rumour mill:
Countrywide doubles foreclosures
Countrywide Financial, the biggest US mortgage lender, said Thursday foreclosures had doubled in November, while late payments continued to rise amid the US subprime housing crisis, reports the FT on Friday.
‘Hope Now’?: US, banks, near plan to freeze subprime rates
The Bush administration and major financial institutions are close to agreeing on a plan that would temporarily freeze interest rates on certain troubled subprime home loans, reports the Wall Street Journal on Friday,
US mortgage foreclosures double
US home foreclosure filings doubled last month from a year ago and the nation’s biggest mortgage lender said late payments rose, suggesting the US mortgage crisis is not abating. The number of foreclosures jumped to 223,538 in September,
Countrywide finds $12bn extra funding
Countrywide Financial, the largest US home lender, said Thursday that it had secured an additional $12bn in financing from its banks, sending its flailing shares up nearly 14 per cent by the close in New York.
CDS report: Credit derivatives markets weaken in thin trade
European credit derivatives markets edged wider on Friday, as traders digested comments by Countrywide’s chief executive that the US could be heading for a recession.
Europe’s benchmark iTraxx Crossover index,
Fresh US housing fears temper appetite for risk
There were signs of reviving risk appetite in financial markets on Thursday as investors piled back into emerging market assets and took on fresh carry trade positions. But Wall Street’s attempts to build on Wednesday’s strong rally juddered to a halt after pessimistic comments from the chief executive of Countrywide,
BofA to invest $2bn in Countrywide
Bank of America plans to invest $2bn in Countrywide Financial, the troubled mortgage lender. BofA will take the stake in the form of preferred shares that can be converted into common stock at $18 per share.
Every move you make — being Buffett in a time of market turmoil
Sometimes it’s not easy being the world’s most successful – and famous – investor. Whenever any media outlets float the idea that Warren Buffett may buy into something – in this case it’s the WSJ reporting speculation by some investors that Buffett may scoop up bits of troubled US mortgage lender Countrywide – the report is picked up by wire agencies,
Why the ‘Canadian solution’ can’t work in the global liquidity crunch
The move by a group of financial institutions to agree a plan to end a liquidity crisis in the Canadian commercial paper market has drawn considerable comment from circles grappling with the liquidity crunch facing big banks and a range of other financial institutions and companies.
Countrywide, Northern Rock, Rams, raise further fears
More symptoms of the credit crunch emerged on Thursday as shares in the largest US mortgage lender Countrywide tumbled a further 11 per cent after it was forced to use an $11.5bn credit line from 40 top banks to boost its cash position,
Lex on short-term funding: to roll or not to roll?
To roll – with the punches – or not? This is the big question hanging over a corner of the vast asset-backed commercial paper (ABCP) market, worth roughly $1,000bn, says Lex on Thursday. This market, which provides short-term funding for an array of issuers,
US banks reject subprime collateral
US banks caught in the credit market upheaval have started refusing to lend money against hedge funds’ subprime credit portfolios. Hedge funds said several banks in recent days had cut off lending to funds that use credit portfolios,
Markets tumble as credit concerns spread
US stocks suffered their worst fall in nearly five months on Tuesday, reflecting fears that the problems in the mortgage market are spreading and investor appetite for complex debt instruments is drying up.
Apollo lifts offer for Countrywide
US buyout firm Apollo Management on Tuesday revised its offer for Countrywide, the UK property company, just hours before the original offer was due to receive court approval, after Countrywide received another bid,
A bigger stub gets Polygon’s backing for Countrywide
The tortuous wrangle over estate agents Countrywide took a new twist on Tuesday with news that private equity suitor Apollo Management has won the support of intransigent hedge fund Polygon by extending the stub equity portion of its offer to 55 per cent.
Apollo raises bid for Countrywide
US private equity group Apollo on Thursday its offer for Countrywide from 590p to 617p per share in a bid to see off a last-minute intervention from rival 3i ahead of Friday’s shareholder vote. The offer,
Apollo avoids a gazumping
You’re just about home and dry, with the vote on Friday, the troublesome activist hedge fund thought to be on board and then a third party bumps you into upping your offer. Apollo nearly got gazumped.
Countrywide and its would-be acquirer on Thursday afternoon unveiled an agreed offer for the UK estate agent.
Polygon poised to accept Apollo’s Countrywide offer
Polygon, the hedge fund that has built a 25.5 per cent stake in Countrywide, is expected to accept the 590p a share offer from US private equity firm Apollo, when shareholders vote on Friday. The terms of the deal,
CDS report: Telecom Italia in the spotlight
Telecom Italia, the Italian telecommunications group, is in the spotlight in the credit derivatives markets this morning after AT&T and America Movil started negotiations to purchase a stake in TI’s holding company,
Polygon raises stake in Countrywide
Polygon Investment Partners has increased its stake in Countrywide, the UK’s biggest estate agency, giving it the option of derailing an agreed £1bn takeover. The hedge fund said on Monday that it had increased its interest from 14.6 to 22.7 per cent via contracts for difference traded on Friday at 590p and 599p.
Markets live transcript 26 Mar 2007
Markets live chat transcript for the chat ending at 11:44 on 26 Mar 2007. Participants in this chat were: Paul Murphy (PM) Neil Hume (NH)
PM: Welcome to Markets Live, the live daily market commentary from the Alphaville team.
3i weights fresh Countrywide bid
The private-equity firm 3i is this weekend considering a £1bn counterbid for Countrywide after Britain’s biggest estate agent announced it had agreed to be taken over by Apollo, reports the Sunday Times.
Apollo ready to buy Countrywide
Apollo, the US private equity firm, will on Wednesday say it is prepared to pay £1.01bn for Countrywide, the UK’s biggest estate agency. It is understood that Apollo will put out a “2.4 announcement” through the LSE,
Apollo set to bid for Countrywide
Apollo, the US private equity group, has this week arranged the financing for a possible bid for Countrywide, the UK’s biggest estate agency, and an offer is now expected early next week. Deutsche Bank and Goldman Sachs are understood to have helped with the financing,
Countrywide buyout team will not back new bidder
The head of Countrywide will not take part in any fresh attempt to take the company private, despite failing last month to pull off a £940m buyout backed by 3i, reports the Times. Harry Hill, chairman-elect of the group also said that he would not put the company up for auction,
New Countrywide suitor could draw 3i back in
3i, the private equity group that last month lost its battle to buy Countrywide, the UK’s biggest estate agency, is understood to be considering its options and may make another offer if a rival steps in.