Countrywide Shares Come Back Down

After surging on deal rumors Thursday, Countrywide's stock declined Friday morning after details of its acquisition by Bank of America were released. In the all-stock transaction, Bank of America will be paying the equivalent of $7.16 per share based on BoA's share price at the time the deal was announced. That was below Countrywide's closing price of $7.75 on Jan. 10, which represented a 51% increase in value on the day. In Friday morning trading, Countrywide's shares declined to $6.52 shortly after noon, a 16% drop on the day, as the market digested details of the transaction.