Wednesday May 19, 3:32 pm Eastern Time
Company Press Release
ContiFinancial Signs Indication of Interest for Its Acquisition By GMAC-RFC
NEW YORK, NY--(BUSINESS WIRE)--May 19, 1999--ContiFinancial Corporation (NYSE:CFN - news) and its majority shareholder, Continental Grain Company, announced today that they have received and signed a written indication of interest with Residential Funding Corporation (''GMAC-RFC''), a subsidiary of General Motors Acceptance Corporation, for the acquisition through merger of 100% of the issued and outstanding shares of ContiFinancial. The definitive terms of the proposed merger have not yet been agreed.
The proposed merger is subject to satisfactory completion of due diligence and execution of a definitive merger agreement, which is expected within 30 days. Consummation of the transaction is contingent upon approval by the shareholders of ContiFinancial, as well as by the Boards of Directors of General Motors Corporation and ContiFinancial Corporation, and the receipt of all regulatory approvals and required licenses. It is expected that the transaction will close within 90 days of the execution of a definitive merger agreement.
ContiFinancial Corporation is a diversified financial services company, with headquarters in New York City and over 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer, servicer and seller of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through Keystone Mortgage Partners LLC, the Company arranges financing for a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans including home equity loans; home improvement loans; prime, non-prime and sub-prime auto loans; charged-off consumer debt and franchisee loans.
Certain statements contained in this news release may be deemed to be forward-looking statements under the federal securities laws, and no assurances can be given that the Company will be able to complete the merger as contemplated. |
