Ocwen CEO Leads Bid to Take Servicer Private
Ocwen Financial Corporation, one of the nation's larger subprime servicers, said late Tuesday that it is entertaining an offer from a group of investors led by none other than CEO and chairman William Erby to acquire the company for $7.00 per share in cash. The West Palm Beach, Florida-based company said it had formed a special committee to review the offer. "I would participate by making a significant investment in the transaction," Erbey said in a letter to Ocwen's board, "and I expect that we would provide members of the Company's senior management team with the opportunity to participate in the transaction as well." The letter stated that the investment team was looking to "move quickly" to finalize a deal. Standard & Poor's issued a bulletin noting that the proposed deal will not have a negative impact on Ocwen's rating or outlook. For more information, visit http://www.ocwen.com.