This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Today's Outrage: BofA Lowballed (Update)

Stocks in this article: BAC BLK IVZ OPY BEN BCS

(Editor's note: This article has been updated since its original publication to reflect that Oppenheimer Holdings has never been interested in Columbia while the unrelated OppenheimerFunds Inc. declined to comment. A clarification also has been published.)

Bank of America's (BAC) reputation appears to be so tarnished that potential buyers of its Columbia asset management business aren't willing to pay as much as the bank thinks the unit is worth.

Everyone knows Bank of America is desperate for cash so that it can repay the $45 billion in taxpayer bailout funds it received and get out from under the government's yoke.

As a result, tepid bids for Columbia have come in around $2 billion, while Bank of America is looking for a $3 billion price tag, according to the Financial times.

The Columbia unit provides services and money market funds for investment professionals, institutional clients, consultants and individual investors who manage their own accounts.

It's no surprise that potential buyers don't see so much value there, considering the damage done to the entire investing community courtesy of the financial havoc wreaked by Bank of America and the other financial institutions that stoked and provoked the mortgage meltdown.

Blackrock (BLK), previously considered the most likely buyer, opted instead to snap up Barclays Global Investors for $13.5 billion from Britain's Barclays (BCS). So the short list of possible buyers is now even shorter - Invesco (IVZ) , Oppenheimer and Franklin (BEN), according to the Financial Times.

The newspaper was not clear about which Oppenheimer company was interested, but a spokesman for Oppenheimer Holdings (OPY) told TheStreet that it is not interested and has never been involved in any discussions with BofA about Columbia. A spokeswoman for the unrelated OppenheimerFunds Inc. declined to comment.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs