Fleet Services Firm PHH Scraps Buyout

Transport Topics, January, 2008 by Anonymous

PHH Corp., the parent of fleet services provider PHH Arval, said Jan. 1 it had abandoned a $1.8 billion buyout offer from General Electric Capital Corp. and private equity firm Blackstone Group because Blackstone could not secure financing.

GE Capital, General Electric Co.'s consumer and commercial finance unit, and Blackstone first announced their proposed buyout of PHH in March (3-26, p. 6).

"I am disappointed that we could not conclude the transactions contemplated by the merger agreement," A.B. Krongard, chairman of PHH, said in a statement.

"The board will determine in due course whether to continue to explore the company's strategic alternatives," he said.

PHH said it will seek a $50 million termination fee from Blackstone. -Associated Press