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Buffett's company to become Bank of America's top shareholder

Warren Buffett's company will become the biggest shareholder in Bank of America Corp (BAC.N), after Berkshire Hathaway Inc (BRKa.N) on Friday invoked its right to acquire 700 million shares of the second-largest U.S. bank.

Berkshire will take a roughly 7 percent ownership stake, worth about $17 billion based on Bank of America's closing price of $24.32 on Thursday.

The transaction will make Bank of America one of Berkshire's largest equity investments, joining Apple Inc (AAPL.O), Coca-Cola Co (KO.N), Kraft Heinz Co (KHC.O) and Wells Fargo & Co (WFC.N), the nation's third-largest bank.

It was made possible by Bank of America's June 28 decision to boost its quarterly dividend to 12 cents per share from 7.5 cents, after passing the Federal Reserve's latest "stress test" of its capacity to weather difficult...


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