Bank of New York Co. has postponed indefinitely a plan to sell part of its mortgage unit in an initial stock offering, sources familiar with the deal said Friday.
Bank of New York had planned to offer four million shares in ARCS Mortgage at $14 to $16 each. But investors balked at the pricing amid a general decline in mortgage-company stocks, the sources said. A Bank of New York spokesman declined to comment.
The share price of Country-wide Credit Industries, the largest publicly-traded mortgage company. has fallen more than 10.% since the beginning of August because of concerns that the refinancing boom is tapering off.
Fleet Financial Group sold part of its mortgage unit on July 31 at $23 a share; the stock was trading at $21.50 on Friday. - Phil Roosevelt