Quantcast

Former Insider Makes Counteroffer for Warehouse Lender

FEB 18, 2014 12:47pm ET
Print
Email
Reprints
Comment
Twitter
LinkedIn
Facebook
Google+

Esposito Global, Dallas, is making a counteroffer for SWS Group Inc., the parent of mortgage warehouse lender Southwest Securities FSB.

The offer of $8 per share tops the offer of $7 per share made by Hilltop Holdings Inc. Hilltop, which is controlled by former First Nationwide and First Gibraltar executive Gerald Ford, already owns 24% of SWS. Hilltop is the parent of mortgage banker PrimeLending.

The Esposito offer appears to meet the objections of SWS investor Lone Star Value Management, which previously said the Hilltop offer undervalues Dallas-based SWS by at least $1 per share.

Esposito Global is headed by Michael Esposito, who started SWS' portfolio trading business, his company's press release said.

A special committee of the SWS board formed to review the Hilltop offer will also now review the Esposito Global offer as well, a press release from SWS states.

Sandler O'Neill + Partners, L.P. is serving as the special committee’s independent financial advisor and Davis Polk & Wardwell LLP is serving as its independent legal advisor.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Already a subscriber? Log in here
Please note you must now log in with your email address and password.