ContiFinancial Signs Indication of Interest for Its Acquisition By GMAC-RFC.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY--(BUSINESS WIRE)--May 19, 1999-- ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ) and its majority shareholder, Continental Grain Company, announced today that they have received and signed a written indication of interest with Residential Funding Corporation ("GMAC-RFC"), a subsidiary of General Motors Acceptance Corporation, for the acquisition through merger of 100% of the issued and outstanding shares of ContiFinancial. The definitive terms of the proposed merger have not yet been agreed. The proposed merger is subject to satisfactory completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and execution of a definitive merger agreement, which is expected within 30 days. Consummation of the transaction is contingent upon approval by the shareholders of ContiFinancial, as well as by the Boards of Directors of General Motors Corporation and ContiFinancial Corporation, and the receipt of all regulatory approvals and required licenses. It is expected that the transaction will close within 90 days of the execution of a definitive merger agreement. ContiFinancial Corporation is a diversified financial services company, with headquarters in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and over 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer, servicer and seller of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through Keystone Mortgage Partners LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , the Company arranges financing for a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans including home equity loans; home improvement loans; prime, non-prime and sub-prime auto loans; charged-off consumer debt and franchisee loans. Certain statements contained in this news release may be deemed to be forward-looking statements under the federal securities laws, and no assurances can be given that the Company will be able to complete the merger as contemplated. |
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