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. Last Updated: 07/27/2016

Takeover Plan Unravels

TORONTO -- CIT Group Inc.'s $4.2 billion takeover of Toronto-based Newcourt Credit Group Inc. appears to be unraveling after both sides said they were reassessing the terms of the deal.

This latest glitch in the four-month takeover saga of troubled Newcourt surfaced Tuesday after CIT said it was re-evaluating the number of CIT shares it would offer for Newcourt.

"As a result of CIT's review of Newcourt's lower-than-expected first-quarter earnings, CIT and Newcourt have initiated discussions to reassess Newcourt's earnings expectations. The parties said the exchange ratio under their agreement could be lower as a result of the ongoing discussions," the companies said in a joint statement.