NEW YORK, Oct 8 (Reuters) - Bank of America Corp shares lost 7.7 percent on
Wednesday, adding to the steep drop the day before, after it offered $10 billion
in shares at a substantial discount.
The bank's shares fell $1.82 to $21.95 in early trading, just below the
$22 pricetag it placed on the 455 million shares it aims to sell.
The stock drop decreased Bank of America's market value by about $8
billion. On Tuesday, it lost nearly $40 billion in its biggest-ever one-day
drop.
Meanwhile, the S&P Financial index slipped 1.6 percent on Wednesday.
Bank of America, which agreed to buy investment bank Merrill Lynch last
month, announced plans to raise cash after reporting a big quarterly profit drop
earlier this week.
It wants to raise $9.76 billion for "general corporate purposes," it said
late on Tuesday, when it priced the offering.
The bank's woes are also dragging down Merrill, which fell 8.7 percent.
Bank of America's shares have fallen 36.3 percent so far this week, while
Merrill is down 38.4 percent.
(Reporting by Jonathan Spicer, editing by Maureen Bavdek) Keywords:
BOA/SHARES
Jonathan Spicer
vj
COPYRIGHT
Copyright Thomson Financial News Limited 2007. All rights reserved.
The copying, republication or redistribution of Thomson Financial News Content,
including by framing or similar means, is expressly prohibited without the prior
written consent of Thomson Financial News.
|