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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Mack who wrote (42836)	5/19/1999 5:01:00 PM
From: Tim Luke	Read Replies (1) \| Respond to of 90042

ContiFinancial Tentatively Agrees to Be Acquired by GM Unit Bloomberg News May 19, 1999, 1:22 p.m. PT ContiFinancial Tentatively Agrees to Be Acquired by GM Unit New York, May 19 (Bloomberg) -- ContiFinancial Corp., a mortgage and home-equity lender, said it tentatively agreed to be acquired by a finance unit of General Motors Corp., the world's biggest automaker. New York-based ContiFinancial and its biggest shareholder, Continental Grain Co., signed an agreement to sell the company to Residential Funding Corp., the mortgage unit of GM's General Motors Acceptance Corp. finance subsidiary. Terms of the acquisition have yet to be worked out. ContiFinancial has a stock- market value of about $336 million. ContiFinancial in February reported a loss of $58.8 million for its fiscal third quarter ended Dec. 31 and said it was in talks with potential investors to get an infusion of cash to pay off debt and bolster its capital. It also lost money in the previous quarter. The company, which is 78-percent-owned by closely held Continental Grain, said it was hurt by a lack of investor demand for the asset-backed bonds it sells to fund its loans. GMAC in December agreed to buy the mortgage-banking business of Capstead Mortgage Corp. for about $550 million. ContiFinancial shares rose 9/16 to 7 3/16 before being halted. They have declined 76 percent during the last 12 months.