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CLAYTON, Mo. -- Several potential bidders, including AT&T Corp. and General Motors, are looking over Prudential Home Mortgage Corp., a $75 billion servicer that originated $24.17 billion in loans last year.
Mark Korell, president and chief executive of the GM-owned GMAC Mortgage Group, Bloomington, Minn., said his firm has the money to buy PruHome, "but the question is whether we have the will -- it all depends on what they're asking."
PruHome and two affiliates -- Lender's Service Inc. and Residential Information Services -- could fetch as much as $1.25 billion.
The sale would help the giant multi-faceted life insurance company replenish its depleted capital.
In 1994, the mortgage operation lost $119 million, while the corporation as a whole lost $909 million.
Last week sources told NMN that PruHome's parent, Prudential Insurance of America. Newark. N.J., decided the mortgage firm two months ago and then last week made that decision public, announcing that it had hired Goldman Sachs & Co. to represent it.
One investment banker familiar with the firm said Residential Services Corp. of America, the umbrella company over PruHome, has developed a list of six potential bidders that includes...