Property data and analytics company CoreLogic rejected an unsolicited US$7 billion takeover offer from two investment firms on Tuesday, July 7, claiming it expected to earn more this year and would buy back more of its stock.
A consortium of Cannae Holdings and Senator Investment Group last month proposed to buy the company for US$65 per share. CoreLogic shares ended trading on Tuesday at US$68.67.
“Given CoreLogic’s strong momentum, increasing margins, accelerating growth, and multi-faceted value-creation model, we are unanimous in our belief that CoreLogic will be able to deliver significantly more value to shareholders than this opportunistic proposal,” CoreLogic chairman Paul Folino said.
CoreLogic noted that Cannae and Senator purchased some shares for more than US$68, calling it a sign the investment firms know it is worth more.
The new financial guidance reflected market share gains and major new business wins as well as the latest estimates of housing market activity, the company said.
CoreLogic stated it had boosted its share repurchase authorization to US$1 billion. It also stated it adopted a short-term shareholder rights plan which, if implemented, would prevent investors from acquiring 10% or more of its common stock, or 20% in the case of certain passive investors.
Full Content: Reuters