B of A Board to Weigh New Bid From Weill

Former American Express President Sanford I. Weill this week has renewed his bid to provide as much as $1 billion in new capital for Bank of America in exchange for the chief executive’s job.

Weill, whose original offer last month was firmly rejected by the bank’s management and board members, this week sent a second, more detailed plan for revitalizing the nation’s second-largest bank to Samuel H. Armacost, B of A’s president and chief executive.

The bank’s board of directors will consider the plan, whose specifics have not been disclosed, at a regular meeting Monday, bank officials said. Sources said Weill is not expected to appear personally to present his ideas.

Sources close to the board said a special meeting has been called for Sunday for a more confidential discussion of the Weill approach and possible changes in top management.

Armacost has not responded publicly to Weill’s proposals, and Weill has not returned numerous telephone calls since his original offer was disclosed last week.

Officials of Shearson Lehman Bros., the brokerage unit of Weill’s former company, declined to comment on reports that the firm had promised to raise the funds for Weill’s B of A bid.

A bank spokesman issued a careful response to questions regarding the matter.

“We received a letter at the end of January on behalf of Mr. Weill which offered equity capital to the bank on unspecified terms if Mr. Weill were named CEO of the bank. The company has now received a second letter which for the first time states that Mr. Weill has a plan for the bank and asks to meet with the board. The board will hold its regularly scheduled meeting this coming Monday and is expected to consider Mr. Weill’s most recent letter,” the spokesman said.

It was not clear whether the board felt compelled to discuss the plan because it offers a viable way out of the bank’s serious problems or merely because directors could not dismiss any plan out of hand.

Analysts and B of A executives contend that the company’s problems are heavy loan losses and high expenses, not a lack of capital. The capital-to-assets ratio of BankAmerica, the bank’s parent company, is 6.11%, above the 6% minimum demanded by federal regulators.

Bank officials insist that the San Francisco institution, with $118 billion in assets, is not for sale.