News Update: CIT Group (NYSE: CIT) May Sell Australian Business To Bank of Queensland

3/29/2010- CIT Group (NYSE:CIT) may sell its Australia and New Zealand vendor-finance business to Bank of Queensland Ltd. as part of reorganization led by CEO John A. Thain, according to a Bloomberg report.

Bank of Queensland agreed to conduct exclusive due diligence for a potential takeover of the CIT business, according to a statement from the lender.

Thain has promised to sell assets and shrink the New York-based company to a set of businesses that will be profitable. He was the former head of Merrill Lynch.

The Australian Financial Review said that CIT Australia’s lending book is valued at about A0 million and the net assets are about A0 million.