H&R Block reopens Option One talks, posts big loss

[Joanne98]

Source: Rueters

NEW YORK, Aug 30 (Reuters) - H&R Block Inc (HRB.N: Quote, Profile, Research) said on Thursday it is renegotiating the planned sale of its Option One Mortgage Corp subprime lending unit to Cerberus Capital Management LP, a move that casts doubt on the largest U.S. tax preparer's ability to complete the sale.

Kansas City, Missouri-based H&R Block agreed in April to sell Option One to Cerberus, a private equity firm, for an estimated $1 billion, but on Thursday said some closing conditions have not been met.

It is in talks to divest or wind down Option One's mortgage lending business, and might incur costs in doing so. Cerberus would buy Option One's loan servicing operations.

The company also said its quarterly loss more than doubled to $302.6 million, or 93 cents per share, from $131.4 million, or 41 cents, a year earlier, hurt by Option One losses. The loss from continuing operations, excluding Option One and two other businesses, was $109.8 million, or 34 cents per share.



Read more: http://www.reuters.com/article/bankingfinancial-SP/idUSN3040026920070830

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[Dont_Bogart_the_Pretzel]

1. gonna sell Option One to Cerberus, a private equity firm...

I wonder if H&R's customers data's safe? :shrug: