Countrywide soars on report of takeover

0 Comments | AFP, January, 2008

NEW YORK (AFP) — Shares of Countrywide Financial shares rallied Thursday after a report said Bank of America is in "advanced talks" to buy the troubled mortgage lender.

The Wall Street Journal, citing two people familiar with the matter, said the two finance groups were in talks on a takeover plan but that it was not clear if or when a deal would be completed.

In August, Bank of America bought a stake of 16 percent in the nation's largest mortgage lender and has first right of refusal in any sale of Countrywide.

On Wednesday, Countrywide's shares extended their slide to a 13-year low, spurred by bankruptcy speculation and a New York Times report that the company admitted to recreating certain documents related to an individual bankruptcy case.

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