Billionaire investor Michael Price bought shares of the ailing Bank of America Corp. at its $19.3 billion equity sale on Thursday.
Bank of America was looking to raise money by offering stock at 4.8 percent lower than Thursday’s closing price to help cut down on government restrictions. The move marked the largest offering of US in the last 10 years.
Price declined to say how much stock he bought referring to the deal only as “unusual” and predicting they would “probably buy more today” in a Bloomberg television interview.
Analysts predict a 2010 profit margin of 96 cents a share for 2010 and $2.10 for 2011 according to Bloomberg commissioned analysts.
Price’s purchase of Bank of America, which fell 66 percent in 2008, could be expected considering his reputation for buying shares of troubled lenders.
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