Residential Capital has rejected Warren Buffett’s offer to be the initial bidder in proposed auctions of ResCap assets, Bloomberg News has reported.
ASR sister publication National Mortgage News reported Buffett’s interest in the deal, through his Berkshire Hathaway, earlier this week.
ResCap asked the judge overseeing its bankruptcy to name a Fortress Investment Group affiliate and Ally Financial as the stalking-horse bidders for separate auctions, according to court papers filed yesterday in New York, the news service reported.
Before ResCap entered bankruptcy May 14, it negotiated a deal to name Fortress as the lead bidder, with a $2.4 billion offer, in a proposed auction for ResCap’s mortgage unit. Ally, ResCap’s parent, separately offered $1.4 billion for a set of loan assets. U.S. Bankruptcy Judge Martin Glenn is scheduled to decide June 18 whether to approve the proposed auctions and name Fortress and Ally as the stalking-horse bidders, Bloomberg said.