Greenlight Decides Against Acquiring BNC Mortgage

A group including New York-based investment management firm Greenlight Capital has withdrawn its $56.1-million offer to acquire residential lender BNC Mortgage Inc. in Irvine, according to a regulatory report filed Thursday.

Greenlight had submitted its $11-a-share bid earlier this year after BNC had agreed to be acquired for $10 a share by a group led by some members of senior management, including President Kelly W. Monahan.

But the investment firm decided not to proceed with the competing offer after reviewing BNC’s operations, according to a document filed with the Securities and Exchange Commission.

In another regulatory filing, BNC Mortgage said it now expects the sale to management to be completed by the end of July. The deal requires shareholder approval.

Greenlight has a 13.2% stake, or 665,400 common shares of stock, in the residential lender.

BNC Mortgage’s stock last traded on Wednesday, closing unchanged at $9.13 on the Nasdaq market.