Investing

PHH (PHH): Another Private Equity Deal Falls Apart

The Blackstone (BX) and GE (GE) buy-out of mortgage and vehicle leasing company PHH fell apart. The reason given was lack of availability of financing. In truth, PHH (PHH) is in a business that is currently as far out of favor on Wall St as an industry can get.

According to Bloomberg “GE agreed on March 15 to buy PHH, sell the mortgage division to New York-based Blackstone and keep the vehicle- leasing unit. The acquisition price was $31.50 a share.” PHH shares currently trade below $18.

The company’s third quarter results were reason enough to cause a buyer to walk. Revenue fell almost 10% to $484 million and the net loss increased over five-fold to $38 million.

No one should be surprised if the shares go below $15 and stay there for some time.

Douglas A. McIntyre

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.