H&R; Block to Acquire Mortgage Lender

Tax giant H&R; Block Inc. said it will acquire Option One Mortgage Corp. for $190 million in cash to bolster its fledgling financial services business. Option One, which made $1.1 billion in loans through 41 locations nationwide last year, is owned by banking giant Fleet Financial Group Inc., which bought the company two years ago. Fleet Financial, based in Providence, R.I., announced in December that it planned to sell the sub-prime mortgage lender. Anderson said Kansas City, Mo.-based Block plans to retain Option One’s existing management and its 561 employees, including 241 at its Santa Ana headquarters. Pending regulatory approval, the deal should close in June, Block executives said. Option One makes loans to individuals who cannot qualify for a traditional home loan. H&R; Block closed up 62.5 cents at $31.50, while Fleet closed down 37.5 cents at $57.25, both on the New York Stock Exchange.