Lomas Financial Corp., Dallas, is still attracting potential bidders after being on the block for more than a year.
First Nationwide Corp., Los Angeles, has been doing due diligence at Lomas, according to a source close to the process. The same source also said Dallas-based Accubanc Corp. may also be considering a bid.
Spokeswomen for First Nationwide and Accubanc said the companies had no comment. Calls to Lomas executives were not returned.
An investment banker familiar with Lomas was not surprised that there were still some potential bidders, but said "it would involve a lot of creativity to get a deal done at this stage."
Lomas sold its money-losing but highly regarded information services unit to Prudential's Residential Services Corp. in December, 1994. That deal brought in $2.5 million in cash, an $8 million note due in five years, and a commitment to contingency payments through 2001. The package could bring in more than $100 million, according to Standard & Poor's.
However, Lomas has been unable to stimulate sufficient interest in the rest of the company to make a deal.
Despite its troubles, Lomas has remained a top government lender, generating $561 million of Ginnie Maes in the first half of this year and ranking fifth in the nation behind such giants as Countrywide, Norwest, Prudential, and GE Capital.
The company also had a servicing portfolio of about $32.5 billion at the beginning of this year, about the same as it had a year earlier. Heavy runoff had plagued the company at the height of the refi boom, but the portfolio obviously has stabilized since then.
Lomas shares, meanwhile, have been selling for 62.5 cents in recent trading, down from about $1.75 at the beginning of April and the year's high of $4.50. The company has been showing losses for at least the last six quarters.