Walter Industries To Separate Finance Business, Merge It With Hanover

(financialwire.net via COMTEX) -- WLT | Quote | Chart | News | PowerRating -- October 1, 2008 (FinancialWire) -- Walter Industries (NYSE: WLT | Quote | Chart | News | PowerRating) (Current Market Cap: US$2.64 Bil.) said that it plans to separate its finance business and merge this with Hanover Capital Mortgage Holdings (AMEX: HCM).

The company, which is a leading producer and exporter of US metallurgical coal, said it plans to distribute 100% of its interest in its JWH holding company to shareholders. Walter also said that it will buyback about $50 million of its shares.

Mark J. O'Brien, Chairman and CEO of JWH Holding Company, will become chairman and CEO of Walter Investment Management following the merger.

Following the merger, the new company will be headquartered in Tampa, Florida and will have 225 employees.

Shares of Walter rose 2% to close at $47.45 on the news.

Walter Industries was enrolled in Investrend Research affiliate ValuEngine's professional analyst program. Complete information is available at the company's InvestorPower" page, which is accessible from http://www.investrend.com/company/list.asp?sPathParam=yes .

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