Old Republic International Falls Sharply after Withdrawing Spinoff

Late in Friday's regular trading session, shares of Old Republic declined more than 10 percent. This occurred after the insurance company revealed that it had withdrawn a previously announced spinoff of subsidiary Republic Financial Indemnity Group (RFIG) . In a statement, Old Republic said the spinoff withdrawal was due to objections by shareholders. Also, Old Republic said, "Concurrently the financial effect of the partial RFIG leveraged buy-out has been reversed." This reversal related to Old Republic's May 21 announcement that an investor group purchased a 20.6% RFIG equity stake in a partial leveraged buyout. Old Republic traded around 0.5% higher in after-hours trading.