In a filing in Manhattan bankruptcy court, Berkshire essentially offered to step in as the preliminary bidder for the mortgage origination and servicing business and a portfolio of loans that are both being put up for auction. That would allow the conglomerate to set the floor for other bids and give it more latitude to match other proposals.
R. Ted Weschler, a top lieutenant to the Berkshire chief Warren E. Buffett, said in the filing that the company would be willing to provide sweeter terms for both assets than the current stalking-horse bidders.
Berkshire would best the current bid by theFortress Investment Group by reducing a break-up fee by about two-thirds, to $24 million, and forgoing any expense reimbursements. And it would pay about $50 million more for the loan portfolio than Ally itself is offering.
A ResCap spokeswoman declined to comment.
- Buffett’s Berkshire Hathaway may buy ResCap unit (cbsnews.com)
- Residential Capital seeks Chapter 11 protection (newsobserver.com)
- Berkshire Offers to Buy ResCap Assets (dealbook.nytimes.com)