G.E. Capital Rejects 2 Bids

G.E. Capital has rejected two bids for its mortgage division, and the chances of getting a deal done any time soon look remote, sources have told MortgageWire.The spurned offers - each made separately - were placed by Chase Manhattan Bank, New York, and a partnership consisting of Kohlberg, Kravis & Roberts, former Citicorp Mortgage chief Rick Thornberry, and former Prudential Home chief Marvin Moskowitz. G.E. rejected the bids because they were too low and the company did not like the "reps and warranties" that were being requested, sources said. Sources also said the bids submitted were for most of G.E. Capital Mortgages Services, Cherry Hill, N.J. "They [G.E.] are not yet thinking about splitting this thing up," said one investment banker. A source familiar with the situation said G.E. will remain open to other offers, but is done talking to Chase and KKR. "They [G.E.] want their price and they're not budging," said one advisor. GECMS services roughly $95 billion in residential loans. In the first quarter it originated (mostly through third-party channels) $4.5 billion in residential product, ranking 13th overall, according to the Database Products Group, a MortgageWire affiliate.