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Fremont Shares Skyrocket on Possible Sale of Mortgage Business

Fremont General told employees it is in talks with five or six companies interesting in buying its residential mortgage business, Bloomberg News said on Wednesday, without saying how it obtained the information.

Fremont shares, which had been trading around $7.30, rose immediately after the report.

Robert Clafford, senior vice president of residential real estate and Fremont Investment & Loan, told employees on a conference call that final presentations to investors may be made today, Wednesday, the report said.

Clafford did not specify what a sale would include, and said employees would remain on paid leave during the talks, it said.

Calls to Clafford, Santa Monica, Calif.-based Fremont and an outside agency that represents the company were not immediately returned.