Alex Wong/Getty Images(OMAHA, Neb.) — Warren Buffett will soon be Bank of America’s largest shareholder.
Buffett’s investment conglomerate, Berkshire Hathaway, is expected to spend $5 billion to buy 700 million shares of Bank of America next quarter.
The company said it will convert warrants purchased in Bank of America in 2011 into common shares, with each share costing $7.14. Berkshire will surpass mutual fund company Vanguard as Bank of America’s largest shareholder.
In his annual shareholder letter, Buffett said he would convert his warrants into common stock if the bank raised its annual dividend to more than 44 cents a share. Bank of America did that this week, later announcing that it would raise its annual dividend to 48 cents a share in the third quarter.
Buffett is also the largest shareholder in Wells Fargo.
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