Activist hedge fund manager Richard Breeden completes his coup at troubled H&R Block Inc. with the resignation of CEO Mark Ernst. Breeden, the former SEC head, was named chairman, and Alan. M. Bennett, a former CFO of Aetna Inc., was named interim chief executive.
H&R Block is conducting a search for a permanent CEO, but Bennett has informed the company he doesn't wish to be considered, according to a press release. Two weeks ago, CFO William Trubeck also resigned.
Ernst and Trubeck were dealt setbacks over the summer when they failed to consummate the April agreement to sell H&R Block's subprime lending unit Option One Mortgage Corp. to Cerberus Capital Management for $1 billion, after putting the unit on the block in late 2006. Cerberus reportedly scuttled the deal on Aug. 31 because of uncertainty in the credit markets, according to TheDeal.com. A week later, Breeden, who had long complained about losses at Option One, secured two board seats at H&R Block. — Matthew Wurtzel
See story from Bloomberg News
See story from DealBook
See press release
See Trubeck resignation story from Dealscape
See Sept. 6 story about Breeden from TheDeal.com
See April 23 deal announcement story from TheDeal.com
See auction profile from AuctionBlock.com (subscription required)
