MT. LAUREL, N.J. – PHH Corp. said dissident shareholders Pennant Capital, a hedge fund that has acquired almost 10% of the company’s shares, won two seats on the PHH board last week, turning both the company’s Chairman A.B. Krongard and its CEO Terence Edwards away.
The two Pennant representatives, Gregory Parseghian, former chief investment officer and briefly CEO of Fannie Mae; and Allan Loren, former CEO of Dunn & Bradstreet, were elected to the board during last week’s elections. A third candidate, James Egan, managing director of Investcorp, was reelected to the PHH board.
Pennant had been agitating for major changes at PHH, which operates the biggest mortgage bank for credit union, including the possible sale of some or all of the company.
A deal to sell PHH for $31.50 per share fell apart in 2007 because of financing difficulties. The company's shares traded for around $17 yesterday. Pennant said it believes the shares have value of $40 each.
