August 29 (Reuters) – Warren Buffett’s Berkshire Hathaway Inc becomes the highest shareholder of, Bank of America Corporation by exercising its right to acquire 700 million shares at a steep discount, more than tripling an investment it made six years ago.
Buffett had received the warrants in 2011 after investing $5 billion in the bank, which was suffering at the time from the fallout from the global financial crisis. Bank of America said Buffett had acquired the shares for about $7.14 each — well below their Tuesday closing price of $23.58. Buffett’s investment is now worth $16.51 billion, meaning he has made a capital gain of nearly $12 billion..
The exercise gives Berkshire a roughly 6.6 percent stake in the second-largest U.S. bank, based on an increase in the number of Bank of America shares outstanding, Reuters data show.
Buffett’s other holdings include major assets in real estate and insurance. His also the biggest shareholder in Wells Fargo.