Standard Pacific Corp. and TOUSA Inc., confirmed they are "engaged in preliminary discussions and the exchange of information . . . regarding a possible transaction," according to statements released by both companies.
TOUSA filed for Chapter 11 bankruptcy protection in January, two months after it was delisted by the New York Stock Exchange. It reached a reorganization agreement with creditors in October that presumably includes the potential merger, although neither company is calling it a done deal.
Industry insiders say the common link between TOUSA and Standard Pacific is private equity firm MatlinPatterson Global Advisers, which specializes in revitalizing distressed companies. The equity firm is the largest shareholder in Standard Pacific and one of TOUSA's major creditors.
Standard Pacific, which is traded on the New York Stock Exchange, announced Thursday that it had named MatlinPatterson partner Ken Campbell as its new president and chief executive officer, with founder Jeffrey Peterson stepping aside but staying on as a director of the company.
Reported by Arizona Republic (12/23/2008)
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