11.01.2008 00:00 Real Estate
| PUBLICIDAD |
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.
Wednesday's drop to a session low of 4.43 dollars was a level unseen since April 1995. The shares surged as high as 8.91 dollars and in late trade were up 55 percent at 7.98 dollars.
Analysts have been cutting estimates for the lender's fourth quarter. The company has projected a profit, but some began to doubt that possibility and began forecasting losses amid Countrywide's rising delinquencies.
On Tuesday, Countrywide addressed speculation of an imminent bankruptcy filing, saying the talk had "no substance" and that it was not aware of a basis for whispers that any of the major ratings agencies are considering a negative action. This was a repeat act of its reassurance during a similar stock swoon in November.
