By Jonathan Stempel

NEW YORK (Reuters) - Fremont General Corp FMT.N, which stopped making subprime home loans in March, said an investment group may pull out of an agreement to inject $80 million to help insure the savings and loan's survival.

Shares of Fremont fell as much as 23.6 percent.

The group led by billionaire investor and former thrift executive Gerald J. Ford had agreed to buy preferred stock and warrants in Fremont, for an initial 16 percent stake.

Fremont, though, said that "in light of certain developments pertaining to the company" and its Fremont Investment & Loan unit, the Ford group was not prepared to invest. The company did not identify the developments.

Santa Monica, California-based Fremont said "it does not necessarily agree" with Ford's position, but is in talks concerning a revised $80 million investment. It said there is no assurance an agreement will be reached.

"This is most likely a negotiating ploy to gain a better price," said Theodore Kovaleff, a senior bank and thrift analyst at Sky Capital LLC in New York.

Ford did not immediately return a call to his Dallas office. Fremont did not answer calls seeking further comment.

Shares of Fremont were down $1.03, or 20.1 percent, at $4.10 in morning trading after falling as low as $3.92 earlier in the session. They began the year at $16.21.