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Fremont Sells Subsidiary.

Fremont General Corp., Santa Monica, Calif., is selling its commercial lending subsidiary, Fremont Financial Corp., to Phoenix-based Finova Group Inc. for about $765 million in cash, including the refinancing and assumption of existing debt.

Fremont Financial provides secured working capital and term loans averaging $2 million to $4 million to mid-sized businesses. Finova provides financial products to small and mid-sized businesses.

For Finova, the acquisition adds mass to its operation, deepens its talent pool and significantly expands its client base, Sam Eichenfield, Finova's chairman and chief executive officer said in a statement. He said he expects Fremont Financial's marketing, credit and operational organization to remain in place since the acquired company's products complement and add to Finova's. He also said he expects the acquisition to be profitable and to boost earnings in 2000.

During the third quarter, Fremont General posted an $85.9 million net loss as it struggled with lower-than-expected reinsurance recoveries for its workers' compensation business.
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Title Annotation:Fremont General Corp, Fremont Financial Corp
Comment:Fremont Sells Subsidiary.(Fremont General Corp, Fremont Financial Corp)
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2000
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