CoreLogic Investor TIG Advisors Calls for Formal Auction

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A top-10 investor in CoreLogic Inc. is calling on the real estate software company to run a formal sales process to secure the highest price possible, while also supporting three director candidates nominated by dissident investors.

TIG Advisors, which owns 2.3 million shares of CoreLogic, said in a letter Friday to the company’s board that it should have run a formal auction after getting indications of interest at $80 a share or more.

“CoreLogic’s hesitation to immediately capitalize on this opportunity is puzzling,” TIG Advisors portfolio manager Drew Figdor said in the letter, a copy of which was reviewed by Bloomberg.

TIG Advisors said it planned to support the recommendation of Institutional Shareholder Services Inc. to elect three directors put forth by CoreLogic investors Cannae Holdings Inc. and Senator Investment Group.

“It is imperative to construct a board that gives potential bidders confidence that the company is dedicated to running a fair process,” Figdor said. “An independent board committee should be established by the board of directors to run the auction process.”

A representative for Irvine, California-based CoreLogic wasn’t immediately available for comment.

The company has said it’s actively pursuing multiple paths to maximize shareholder value, including reviewing strategic alternatives.

In June, Cannae and Senator proposed buying CoreLogic for $7 billion, including debt. That offer was rebuffed but since then several other parties have come forward expressing interest in the company at $80 a share or more, including a consortium that includes Warburg Pincus and GTCR.

Cannae and Senator have dropped out of the bidding but have continued their push to replace nine of CoreLogic’s directors. A second shareholder advisory firm, Glass Lewis & Co., recommended on Thursday that shareholders support four of Cannae and Senator’s nominees and replace CoreLogic Chairman Paul Folino.

Earlier this week, another large shareholder, Pentwater Capital Management, said it planned to support the dissident shareholders’ nominees for the board over concerns about how the company was fielding interest from potential buyers.

©2020 Bloomberg L.P.

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