CoreLogic (CLGX) – Get report rose on Friday after Cannae Holdings (CNNE) – Get report and Senator Investment Group submitted an unsolicited offer to the mortgage and property information services company valued at about $ 5.16 billion.
Shares in the Irvine, California company were up 28% to $ 67.72. Canne lost approximately 1% to $ 39.42.
Cannae and Senator Investment jointly own around 15% of CoreLogic’s outstanding shares and offered to buy the company for $ 65 a share.
“Despite its strong market position as a data and analytics provider for the real estate and mortgage industries,” Cannae and the senator said in a letter to the CoreLogic board of directors, “we believe the company will not achieve its full potential under your current strategic strategy. ” plan. Therefore, we believe that the proposed transaction is in the best interest of all of the Company’s shareholders. “
The cash proposal represents a premium that is 37% higher than the company’s unaffected share price and 34% higher than the company’s 30-day volume-weighted average price, according to the letter.
“As one of the Company’s largest shareholders, we believe that this proposal offers total value to shareholders and is far superior to what the Company can achieve with its current plans,” the letter says.
This belief is demonstrated, the letter continued, “by the fact that we are offering shareholders, in a transaction that we are willing to close in a few months, a premium that is greater than the 26% share price appreciation. it took the Company in the past five years to achieve it. “
“We were disappointed to see the company take the very unusual step of obtaining quarterly guidance five days before the end of the quarter and we suspect this was a defensive move in light of the high volume of trading and knowledge of our interest in the Company,” added. letter said
Nevertheless, the letter continued: “We are optimistic that we can still engage constructively with the Board. However, please understand, as evidenced by our considerable investment in the Company, that we are committed to this transaction.”
CoreLogic said in a statement that it was not aware of any proposed acquisition before issuing its revised guidance.
“While Cannae and Senator had not previously expressed the acquisition interest to the Company,” the company said. “The CoreLogic Board of Directors, in accordance with its fiduciary responsibilities, will carefully review the proposal with the assistance of financial and legal advisers to determine the course of action that it believes is best for the Company and its shareholders.”
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