First American financial won't pursue CoreLogic

Published: Dec 6, 2011 11:29 a.m. ET




First American Financial Corp. FAF, +1.87% said it will no longer pursue an acquisition of CoreLogic Inc. CLGX, -0.12% retreating from previous offers to buy the real-estate processor and data-service provider.

First American shares were up 6.7% to $12.16 in recent trading, while CoreLogic slipped 1.5% to $13.54.

After CoreLogic launched a strategic review in late August, First American Financial--which spun off CoreLogic last year and remains its largest shareholder with an 8.4% stake--has strongly urged the company against a potential sale. CoreLogic's market value is $1.45 billion.

Instead, the financial services company suggested CoreLogic sell certain non-core businesses, which it offered to purchase, in order for the company to streamline its focus. First American added that it would purchase the company if CoreLogic still deemed it best to sell itself entirely.

In a filing with the Securities and Exchange Commission, First American Financial said it has withdrawn from the process and informed CoreLogic through its adviser that it is no longer interested in pursuing a purchase.

In late August, CoreLogic disclosed it was forming an independent committee to explore strategic options including possible spinoffs, a merger or a sale of the business. The company retained Greenhill & Co. (GHL) to advise a special committee on the possible moves.

Also Tuesday, First American said it will take a $19.2 million charge in the fourth quarter as it has settled a lawsuit filed against it by Bank of America Corp. (BAC). The charge comes in addition to a $13 million charge First American took in the third quarter.

Stock References

  • FAF
    +0.63 +1.87%
  • CLGX
    -0.04 -0.12%

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