NEW YORK (Thomson Financial) - Shares of embattled mortgage lender Countrywide Financial shares soared Thursday, adding as much a 74% in intraday trading moments after a report said Bank of America is in advanced talks to buy the company.
The stock rallied to a high of $8.91 before paring gains to trade up 46% at $7.48 on volume of 112.2 million shares, compared with a full-day average of about 46.6 million shares.
On Wednesday, the stock had hit an intraday low of $4.43, the lowest price seen since April 1995, amid concerns over liquidity issues and a New York Times report that the company admitted to recreating certain documents related to a bankruptcy case.
The Wall Street Journal, citing people familiar with the situation, said it a deal between Bank of America and Countrywide could be struck very soon. Michelle Rama mr/tk1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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