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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: Tim Luke who wrote (42914)	5/19/1999 11:51:00 PM
From: kathyh	Read Replies (2) \| Respond to of 90042

i do not totally understand what this article is saying about cfn... does it mean that a buyout figure will not be determined for 30 days? or do you think one has already been determined and we will hear about it in the morning? thanks, tim... kathy :) Wednesday May 19 6:16 PM ET ContiFinancial Gets GMAC Takeover Bid By Gilles Castonguay NEW YORK (Reuters) - ContiFinancial Corp. (NYSE:CFN - news) said Wednesday it was considering a buy-out offer from General Motors Acceptance Corp. (GMAC), the latest in a wave of merger activity sweeping the financial services sector. ContiFinancial, a New York sub-prime home equity lender that is majority owned by Continental Grain Co., said it was reviewing a ''written indication of interest'' from GMAC unit Residential Funding Corp. to buy all of its stock. ''The definitive terms of the proposed merger have not yet been agreed,'' it said in a statement. ''The proposed merger is subject to satisfactory completion of due diligence and execution of a definitive merger agreement, which is expected within 30 days.'' ContiFinancial officials were not immediately available for comment, while those at GMAC declined to comment. ContiFinancial, whose stock was halted from trading on the New York Stock Exchange in anticipation of the news, said it expected to close the deal within 90 days of the signing of a definitive agreement. Its stock had a last sale of $7.19, recovering from $3.50 on March 12, its lowest point this year. ContiFinancial had 46.1 million diluted weighted average shares outstanding on Dec. 31. The announcement was the second of its kind to be made in the industry Wednesday. Earlier in the day, Washington Mutual Inc., the largest U.S. thrift, said it had agreed to buy sub-prime mortgage lender Long Beach Financial Corp. (Nasdaq:LBFC - news) for some $350 million. GMAC is the financing arm of General Motors Corp. (NYSE:GM - news), offering automotive financing, insurance and mortgage banking. Based in Minneapolis, Residential Funding is a major private-sector issuer of so-called non-conforming mortgage-backed securities in terms of volume. These securities include pools of jumbo loans, or mortgages that total more than $240,000 each. In the first quarter, it issued $8.6 billion worth of mortgage-backed and asset-backed securities. Residential Funding's written indication to ContiFinancial follows its acquisition for an undisclosed sum of two sub-prime lending companies, namely American Financial Consultants LLC of Phoenix Finance Group LLC, and Triad Financial Services Inc. of Minneapolis. --------------------------------------------------------------------------------