BankUnited Auction Extended As Thrift Scrambles For Capital 05/14 07:56 AM
NEW YORK (Dow Jones)--The auction to find a new buyer for struggling BankUnited Financial Corp. (BKUNA:$1.13,00$0.37,0048.68%) has been extended until next week, according to a person familiar with the matter.
Bidders were originally asked to submit their pitches to the Federal Deposit Insurance Corporation by noon Thursday. However, that deadline has been extended to next Tuesday, the person said.
The thrift, based in Coral Gables, Fla., warned on Wednesday that it could be forced into receivership by the FDIC if it failed to raise $1 billion in fresh capital. BankUnited also estimated a massive loss of $443.1 million for the fiscal second quarter, according to a regulatory filing.
Two likely consortiums have emerged as acquirers of BankUnited, but neither would confirm that a bid has been submitted.
Canada'sToronto-Dominion Bank (TD:$40.9600,$0.8100,2.02%) has teamed up with Goldman Sachs Group Inc. (GS:$131.0000,$1.7400,1.35%) to buy the thrift, according to another person briefed on the matter. TD Bank would take over the branches and deposits, while Goldman would take a nominal role buying up some of BankUnited's distressed assets, the people said.
Billionaire investor Wilbur Ross'WL Ross & Co. has confirmed he plans to put in a bid through a consortium that includes private-equity firms Blackstone Group (BX:$11.3600,$-0.2700,-2.32%) and Carlyle Group.
There has also been speculation that JC Flowers & Co., the New York-based investment firm run by J. Christopher Flowers, also might be interested. A spokesman for Flowers wouldn't comment on talk of a bid, and his attorney didn't return telephone calls.
The FDIC declined to comment.
-By Joe Bel Bruno, Dow Jones Newswires; 201-938-4047; joe.belbruno@ dowjones.com
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