NEW YORK, June 2 Element Financial Corp
is finalizing a deal to buy PHH Corp's auto fleet
leasing business for about $1.4 billion, two sources familiar
with the matter said on Monday.
The transaction would give Element, a Canadian equipment
finance company, a platform for expansion in the United States.
The boards of both companies approved the transaction
involving the unit, PHH Arval, this weekend, and the contract
was being finalized, the sources said. A deal could be announced
as soon as after the market close on Monday, the sources said.
PHH's net proceeds from the deal, after taxes and expenses,
were expected to be between $750 million and $800 million, one
Officials from PHH, which also has a mortgage business, and
Element could not be reached immediately for comment.
(Reporting by Paritosh Bansal; Editing by Jeffrey Benkoe)