Berkshire Hathaway Inc. (BRK/A), the holding company run by billionaire Warren Buffett, offered to buy Residential Capital LLC's mortgage unit.
Berkshire seeks to replace Fortress Investment Group LLC (FIG) as the initial bidder at an auction for the bankrupt company's most valuable asset.
Berkshire is also willing to become the so-called stalking horse, or initial, bidder for the part ResCap's loan portfolio that Ally Financial Inc. (ALLY) wants to buy. Berkshire said in court papers filed today in U.S. Bankruptcy Court in Manhattan that it will offer better terms than Fortress and Ally.
"Both offers will remain open for the court to approve and the debtors to execute on or before June 19," Berkshire said.
ResCap filed for bankruptcy May 14 with plans to sell most of its assets to Fortress. Ally, a Detroit-based bank that specializes in car loans, owns ResCap. Ally supported the bankruptcy filing as a way to resolve legal claims related to mortgage-backed securities. Ally is 74 percent-owned by the U.S. Treasury after receiving a bailout.
Gina Proia, a spokeswoman for Ally, didn't immediately return a call seeking comment on Berkshire's offer.
Gordon Runte, a spokesman for Fortress, declined to comment on Berkshire's offer.
