Paulson & Co, Dune Capital, JC Flowers & Co to acquire IndyMac

According to reports out on Monday, IndyMac Federal Bank (OTC:IDMCQ) is being sold to a hedge fund and a group of private-equity firms in a deal that the US Federal government are partly funding.

Hedge fund Paulson & Co along with private-equity firms Dune Capital Management and J.C. Flowers & Co will buy IndyMac that was seized by the Federal Deposit after it declared insolvent in July.

IndyMac, which branches throughout California and had $32 billion in assets was the second biggest bank failure this year behind the collapse of Washington Mutual in September.

According to the reports the deal could be announced on Monday, which could include Dune Capital buying IndyMac for about $14 billion, it’s also likely that the FDIC could cover certain losses as part of the deal by working out a loss sharing agreement.

Former Goldman Sachs Group Inc partners Daniel Neidich and Steven Mnuchin founded Dune Capital in 2004, and another former partner of Goldman Sachs, J. Christopher Flowers leads J.C. Flowers.

Source: Bussinessweek