its not a name i really care about. but i like to price things.
Buffett has stuck $5bn down, for that he gets pref shares that are worth $5.5bn, what is 10% between buddies..
the real KICKER is the warrants he gets, 700mm warrants that i think are worth $3.5, so $2.6bn.
in essence that means BAC is letting Buffett buy stock at a discount of 5/(5+2.6) it at 66c on the dollar.
BAC recently said that their tangible book value was $12.65
They just let Buffett buy the stock at effectively 36c on THEIR dollar if they think that $12.65 is fair value...
'yem kidding me.
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