Bank of America (BAC) said on Tuesday Berkshire Hathaway (BRK) has exercised its warrants to purchase 700 million shares of Bank of America common stock, and becoming its biggest shareholder.
“In 2011, we welcomed Berkshire Hathaway as a shareholder, and we appreciate their continued support now as our largest common shareholder,” said Bank of America Chief Executive Officer Brian Moynihan.
The bank said there will be no effect on future diluted earnings per common share as this warrant exercise has been previously included in the company’s diluted earnings per share calculation. Berkshire used the Series T preferred shares Berkshire Hathaway acquired through its investment in Bank of America in 2011.
Bank of America shares were firm after-hours.