GMAC Commercial Mortgage Corp.'s bid to acquire a French mortgage lender in a joint venture with Brazos Group, has been rejected by the French government.

The GMAC subsidiary, based in Horsham, Pa., said Tuesday it was disappointed that its bid to acquire Credit Foncier de France SA, was not accepted. It said it will continue to pursue "lending opportunities" in Europe and elsewhere.

French sources said they were not surprised the bid was rejected. The GMAC unit and Texas-based Brazos Group had proposed creating an investment company, which would have bought all the shares of Credit Foncier. The French bank specializes in loans to low-income property buyers.

The plan called for 30% of the shares to be held by "French interests"; the two U.S. companies would have controlled 70%, they said in a release. Credit Foncier is 90%-owned by the French government depository and 10%- owned by shareholders, sources said.

"It was impossible to arrive at a balanced agreement preserving the interest of the current shareholders of CFF and of the State," according to a translation of a statement from the French Ministry of Economy, Finance, and Industry.

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