Wednesday, January 2, 2008
PHH Corp., a mortgage originator and provider of automobile fleet management services, announced that its $1.7 billion LBO was off, because the Blackstone Group could not raise the financing for the deal. It also said that Blackstone owed it a $50 million termination fee. Blackstone had promoted its reputation for not walking away from a deal; its inability to raise the funds for a relatively small deal does not bode well for the future. WSJ, Very Early in '08, A Failed Deal Harks Back to '07; NYTimes, Deal to Buy Mortgage Company Collapses.