Buffett endorsement bolsters BoA Merrill shares

Buffett's $5 billion investment in Bank of America Merrill Lynch is just the fillip stock markets need, despite specialists' mixed reception to the cash injection.

Buffett endorsement bolsters BoA Merrill shares
Buffett lends a helping hand to BoA Merrill (AFP)

Bank of America Merrill Lynch shares bucked losses on Friday after Warren Buffett struck a deal to invest in $5 billion worth of preferred stock with warrants to buy 700 million BoA Merrill shares at $7.14 a share.

“I remain confident that we have the capital and liquidity we need to run our business,” said BoA Merrill chief executive officer Brian Moynihan, while announcing the investment. The reference to BoA Merrill being...

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