Company Berkshire Hathaway, owned by Warren Buffett in 2011 acquired the preferred shares of the second largest US Bank — Bank of America – in the amount of $ 5 billion. The deal includes the possibility of converting of preference shares in ordinary to 2021. In this preferred shares annually brought 300 million dollars worth of dividends.
And so the decision was made — Buffett demanded conversion. Ordinary shares Buffett is currently worth about $ 17 billion, 12 billion more than the purchase price.
Probably the management of Bank of America has experienced significant stress in connection with the decision by Buffett’s decision about the sharing, but nothing to do. Dividends and repurchase of shares was confirmed.
According to Buissness Insider, the company increased its dividend to 12 cents a share that now, after conversion to ordinary shares, Buffett will bring $ 336 million per year in dividends.
This step makes Buffett the largest shareholder of both the world’s largest banks — Bank of America and Wells Fargo.
