PMI Says Investor Ends Talks After Weighing Stake
PMI Group Inc. (PPMIQ), the mortgage insurer that filed for bankruptcy protection in 2011, said a “well- known private-equity investor” ended talks about taking a minority stake in the reorganized company.
“The potential investor recently terminated such negotiations, and the company expects not to proceed with a transaction,” San Ramon, California-based PMI said today in a regulatory filing.
The insurer said it hasn’t yet decided whether it will pursue other outside investors. PMI didn’t give a reason why the talks, disclosed in December, ended.
A rebound in the housing market is fueling investor interest in mortgage insurance after companies like PMI and Triad Guaranty Inc. (TGIC) were hobbled by losses in the real estate slump. NMI Holdings Inc. raised $550 million last year to open a mortgage insurer, and MGIC Investment Corp. (MTG) and Radian Group Inc. (RDN) have sold common stock and convertible senior notes this year to bolster their units that back home loans.
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