TOUSA, Standard Pacific in talks

South Florida???s largest bankrupt homebuilder, TOUSA, is in possible sales or merger talks with Standard Pacific Corp.

Irvine, Calif.-based Standard Pacific (NYSE: SPF), one of the nation's largest homebuilders, already operates in California, Florida, Arizona, the Carolinas, Texas, Colorado and Nevada.

The company recently confirmed in a news release that it is in talks with Hollywood-based TOUSA (Pink Sheets: TOUSQ).

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"Although the homebuilding industry is experiencing challenges at this time, we believe that there may be attractive land and corporate opportunities worth considering,??? Standard Pacific said. ???To this end, the company is engaged in preliminary discussions and the exchange of information with TOUSA Inc. regarding a possible transaction.???

The statement added that ???there can be no assurances that any transaction will occur,??? and that the company would have no more comment unless a transaction agreement was reached.

Standard Pacific said it has built homes for 103,000 families during its 42-year history. It also provides mortgage financing and title services to homebuyers through its subsidiaries and joint ventures, Standard Pacific Mortgage, SPH Home Mortgage and SPH Title.

TOUSA???s bankruptcy, filed Jan. 29, is one of the largest and most complex in South Florida, with 38 debtor companies and originally $2.2 billion in liabilities. Its subsidiaries, including Engle Homes, Newmark Homes and Estate Homes, have operated in Florida, Texas, Colorado, Nevada, Tennessee, Virginia, Maryland and Pennsylvania.

In the fall, TOUSA had proposed emerging from bankruptcy by cutting itself loose from $1.6 billion in bond debt and other unsecured obligations. That plan had no new outside sponsor. The company said it has adequate capital to support it. But, the bankruptcy has also included an $800 million fight between unsecured creditors and lenders.

TOUSA shares were down 2 cents to 3 cents in midday trading. The 52-week high was 25 cents on March 3. The 52-week low was a penny on Oct. 15.