Pennant Capital Management LLC, a Chatham, N.J.-based hedge fund with a stake in PHH Corp., has reiterated its opposition to PHH's agreement to sell out to GE Capital and The Blackstone Group.Citing information provided by PHH in an Aug. 6 preliminary proxy, Pennant again called on management to separate the company's two main businesses with a spinoff of its fleet management operations. "The new disclosures underscore the value-destroying nature of the proposed sale and strongly support our rationale for continued public ownership and a business separation through a tax-free spin-off," Pennant said in its letter, signed by managing member Alan Fournier. Mr. Fournier said the amended proxy "shows that the board likely agreed to sell the mortgage business for after-tax proceeds of less than 0.8x tangible book, implying that even a liquidation of the mortgage business would be preferable to the proposed sale and result in an immediate combined valuation of $35 per share." Pennant estimated that this would allow shareholders to realize a combined valuation of approximately $60 per share in two years. PHH is one of the largest independent mortgage banks in the country.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11