Market Overview

CoreLogic Shuns Another $7B Buyout Offer From Existing Stakeholders Cannae And Senator

CoreLogic Shuns Another $7B Buyout Offer From Existing Stakeholders Cannae And Senator

CoreLogic, Inc. (NYSE: CLGX) rejected an unsolicited $7 billion buyout offer from investment firms Cannae Holdings Inc (NYSE: CNNE) and Senator Investment Group LP on Tuesday.

What Happened

This is the second time that the property data and analytics solutions provider has rejected a buyout offer from Cannae and Senator after the two investment firms didn't revise their June 26 offer to acquire all of its outstanding shares at $65 per share in cash.

"Despite the Company's recent guidance update for 2020 and disclosure of financial projections for 2021 and 2022, Senator and Cannae have not revised their proposal to deliver appropriate value to our shareholders," CoreLogic said in a statement. "We are open to continuing our dialogue, but we are focused on delivering superior shareholder value by executing on our plan."

Why It Matters

Cannae and Senator together hold nearly 15% interest in CoreLogic, according to Reuters.

The newswire’s sources said that the investors asked CoreLogic for additional financial documents to more thoroughly examine the profitability of its business segments.

There is no confirmation on whether CoreLogic will comply with the request of the investors, but it termed the call for documents reasonable.

Private equity firms are also interested in CoreLogic, but an offer matching one made by the two firms has yet to be made.

Cannae and Senator have said that they may call a special shareholder meeting as early as July 28 to replace CoreLogic’s board if no progress is made on the buyout.

The two investors have hired proxy solicitor D.F. King to prepare for the potential proxy contest, while CoreLogic has retained Innisfree as its solicitor.

Price Action

CoreLogic and Cannae shares were unchanged at $67.06 and $40.65, respectively, in the pre-market session Wednesday.


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