PHH In Talks For Potential Sale Of Fleet Management Services Unit

(RTTNews) - PHH Corp. (PHH), a provider of business process management services for the mortgage and fleet industries, said Wednesday that it is engaged in talks regarding a potential sale of its fleet management services business, PHH Arval.

In a statement, PHH said, "PHH is engaged in discussions regarding a potential sale of PHH Arval, its Fleet Management Services business. There can be no assurance that these discussions will result in a definitive agreement or on what terms. We do not intend to provide further comment at this time."

While reporting its financial results for the fourth quarter in February, Mount Laurel, New Jersey-based PHH said it was exploring ways to maximize shareholder value through the separation of its fleet business, mortgage business, or both. At that time, the company said it has retained J.P. Morgan Securities LLC, Centerview Partners LLC and Kirkland & Ellis LLP to assist in the process.

In early May, PHH reported net loss for the first quarter of $42 million or $0.73 per share, compared to net income of $52 million or $0.79 per share in the year-ago period. Net revenue for the quarter fell to $517 million from $730 million in the prior-year period.

PHH closed Wednesday's trading at $23.78, up $2.62 or 12.38 percent on a volume of 9.53 million shares. In after-hours, the stock further gained $0.02 or 0.08 percent to $23.80.