Why did BAC share price fall on recent news?

This may sound naive, but I had a question about the recent BofA news concerning the Company's request for more bailout funds. It is my understanding that when the government bailout was announced and individual banks received bailout funds, the market values of investment banks increased. Now that BofA is requesting more for the Merrill merger, why would their share price fall? Wouldn't receiving more funds improve their balance sheets resulting in an increase in share price?

My best guess would be that asking for additional bailout money worries shareholders about the overall strength of the company. Is this correct?

 

There's also the prospect of dilution for existing shareholders, which I imagine is a major concern.

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