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Nationstar named opening bidder for ResCap business
June 19 |
June 19 (Reuters) - A judge on Tuesday approved Nationstar Mortgage Holdings Inc as the opening bidder for Residential Capital LLC's mortgage origination and servicing business, beating out an offer from Warren Buffett's Berkshire Hathaway Inc.
Berkshire will be the opening bidder for a ResCap loan portfolio, eclipsing an initial offer by ResCap's parent company, Ally Financial, a ResCap spokeswoman said after a U.S. Bankruptcy Court hearing in New York.
ResCap, the mortgage unit of Ally Financial, the former in-house financing arm of General Motors Co, filed for bankruptcy last month with a plan to sell assets to Nationstar and Ally for about $4 billion.
After Berkshire emerged as a bidder for the mortgage business, Nationstar, a unit of Fortress Investment Group LCC , increased its initial bid by $125 million to $2.45 billion, ResCap said. Berkshire bid $1.44 billion for the loan portfolio, $50 million more than Ally, ResCap said.
Other potential buyers will be able to bid as part of the Chapter 11 bankruptcy process.
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