Published October 07, 2013
NEW YORK – PHH Corp is exploring splitting up its mortgage and auto fleet leasing businesses, and selling each of the units, three people familiar with the situation told Reuters on Monday.
The Sparks, Maryland-based company has been discussing selling its businesses in two parts for the past several months, according to the sources, who wished to remain anonymous because discussions are confidential.
Last month, activist investor Orange Capital LLC reported a 5 percent stake in PHH and called for a break-up of the company's assets, driving its shares up as much as 8 percent.
As a whole, a deal for PHH could be valued up to $1.4 billion, two of the sources said. If the company manages to split up the businesses in two separate sales, the mortgage unit could be worth around $800 million with the fleet business worth around $500 million, one of the sources said.
A PHH spokesman was not able to immediately provide comment. Ocwen and Nationstar spokesman declined to comment.
(Reporting by Jessica Toonkel. Editing by Andre Grenon)