Ocwen Financial Corp. (OCN), a mortgage servicing firm, said that it was unable to reach an agreement to be acquired by an investor group that included Oaktree Capital Partners, Angelo Gordon & Co. and Ocwen chairman and CEO William Erbey. The group had bid $7 per share in January, which would have valued Ocwen's total equity at around $438 million. Ocwen had retained Evercore Group to advise on the offer.
Ocwen Financial Corporation (NYSE:OCN) (the “Company”) today announced that it has been unable to reach an agreement as to the terms of a definitive agreement regarding a proposal (the “Proposal”) made on January 14, 2008 by a group of investors led by William C. Erbey, Chairman and Chief Executive Officer of the Company (“Mr. Erbey”), Oaktree Capital Management, L.P. (“Oaktree”) and Angelo, Gordon & Co., L.P. (“Angelo Gordon” and, together with Oaktree, the “Sponsors”) to acquire all of the outstanding shares of the Company for $7.00 per share in cash. As a result, on March 11, 2008, the Sponsors delivered to the Special Committee of independent directors established to consider the Proposal (the “Special Committee”) and to Mr. Erbey separate letters stating that the Sponsors were terminating discussions with the Special Committee regarding the Proposal. The Special Committee will continue to consider possible strategic opportunities for the Company, but has not made a decision with regard thereto. There can be no assurance that any transaction involving the Company will occur.
Ocwen Financial Corporation is a leading business process outsourcing provider to the financial services industry, specializing in loan servicing, mortgage fulfillment and receivables management services. Ocwen is headquartered in West Palm Beach, Florida with offices in Arizona, California, Florida, Georgia, Illinois and New York, and global operations in Canada, Germany and India. Utilizing our global infrastructure, state of the art technology, world-class training and six sigma processes, we provide solutions that make our clients' loans worth more. Additional information is available at www.ocwen.com.