China in auto power play
It might not shake up the industry just yet, but China's interest in Volvo and Saab is the start of something big in global autos, writes columnist Wei Gu. Commentary
PHH receives $50 mln after deal falls through
NEW YORK (Reuters) - Mortgage and vehicle fleet company PHH Corp (PHH.N) said on Friday it received a $50 million termination fee from Blackstone Capital Partners, a fund affiliated with buyout firm Blackstone Group (BX.N), after a deal to buy the company fell apart.
PHH said on Tuesday it terminated its nearly $2 billion sale to General Electric Co (GE.N) and Blackstone, after the private equity firm failed to obtain required financing for the deal. PHH said at the time it requested a termination fee of $50 million from the Blackstone Group.
PHH also said on Friday it agreed to pay up to $4.5 million to cover fees charged by consultants that Blackstone retained in connection with the failed deal.
GE and the Blackstone Group had agreed in March to acquire PHH for $1.8 billion. Under the terms, GE would have retained PHH's vehicle fleet company PHH Arval and would have sold PHH Mortgage to Blackstone.
PHH shares closed on Friday at $15.98, down 87 cents on the New York Stock Exchange. In March, the GE and Blackstone deal valued the company at $31.50 per share, and PHH stock had traded as high as $31.52 in July.
The deal termination follows turmoil in the credit markets, which has made financing of leveraged buyouts (LBOs) much more difficult.
(Reporting by Megan Davies; editing by Carol Bishopric)
