Shares of finance company Contifinancial Corp. plunged more than 35% last week on speculation that the company's deal with a General Motors subsidiary had fallen apart.

Contifinancial said May 19 that it had received a "letter of interest" from Residential Funding Corp., a finance unit of General Motors. The company had been searching for an equity partner since last year and said then it expected a deal within 30 days.

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