PHH opposed to shareholder Pennant's nominees for election to board

By Lisa Kerner

Charlotte, N.C., April 8 - PHH Corp. said its board of directors unanimously opposes the nomination of Gregory J. Parseghian and Allan Z. Loren by Pennant Capital Management, LLC for election to the company's board.

Loren is the former chairman of Dun & Bradstreet Corp., and Parseghian is the former chief executive officer of Freddie Mac, according to Pennant.

The company will hold its 2009 annual meeting of stockholders at 10 a.m. ET on June 10 at company headquarters in Mt. Laurel, N.J.

Pennant's nominees were named in opposition to two of the three candidates nominated for election by PHH, the company said in a letter to its shareholders on Wednesday.

"Notwithstanding the current challenging economic environment, PHH's board of directors and management team are keenly focused on positioning PHH to build long-term value for PHH's stockholders through the effective use of PHH's assets," the letter said.

According to PHH, since hitting a 52-week low on Nov. 11, the company's common stock has increased in price by over 200% in less than six months.

In March, Pennant said it believed that PHH's current depressed market valuation reflects a dim view of the company's stewardship by its board.

In November, Pennant wanted PHH to add Parseghian to its board and to form a special committee, which would include Parseghian, to review strategic alternatives for the company.

PHH is an outsource provider of mortgage and vehicle fleet management services.

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