Fremont General(FMT Quote) plunged 22% after an investor group led by Gerald J. Ford said it is looking to get out of its original agreement to invest $80 million in the troubled company.
The Santa Monica, Calif.-based company said it had been advised by Ford that "in light of certain developments" pertaining to the company and its retail bank, "he is not prepared to consummate the transactions contemplated" by the agreement both groups entered in May.
Fremont, which earlier this year consented to a cease-and-desist order from the Federal Deposit Insurance Corp. that forced it out of residential subprime lending, agreed in May to sell its commercial loan business to iStar Financial(SFI Quote) for $1.9 billion in cash. In conjunction with the deal, the company said that an investor group led by Ford would take control of the company and its retail bank. ...
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