Cannae, Senator Drop CoreLogic Bid, Keep Board Fight
(Bloomberg) -- Two investors that had sought to buy CoreLogic Inc. are walking away because it’s gotten too expensive.
Cannae Holdings Inc. and Senator Investment Group aren’t prepared to pay the $80 per share or more for the software company that other bidders have offered, they said in a statement Friday.
They plan to press ahead with efforts to revamp the board, and expect CoreLogic to promptly sign a deal with another suitor.
“While we are not a bidder at these prices, it would be a great outcome for shareholders.” the pair said.
CoreLogic said in a letter to shareholders Friday that it is currently pursuing multiple paths to drive value for investors, including a potential sale of the company.
“That is why we rejected Senator and Cannae’s lowball offer of $66 per share, are engaging with third parties at substantially higher prices, and are entering into customary confidentiality agreements to provide due diligence,” CoreLogic Chairman Paul Folino and Chief Executive Officer Frank Martell said in the letter.
Shares in the Irvine, California-based company rose 0.3% to $76.90 at 2:24 p.m. in New York on Friday, giving the company a market value of about $6.1 billion.
CoStar Group Inc. has told CoreLogic it is prepared to pursue a takeover in the $77 to $83 per share range, while private equity firms Warburg Pincus and GTCR indicated they were prepared to pay $80 a share or more, people familiar with the matter told Bloomberg News this week.
While CoreLogic has entered into a non-disclosure agreement with the Warburg Pincus group, CoStar has balked at the terms of an NDA, the people said.
Cannae and Senator had proposed buying the company at $66 a share, but CoreLogic rebuffed their offer, arguing it undervalued the company.
They plan to push ahead with their efforts to elect nine directors at a shareholder meeting next month because they doubt CoreLogic will run a full and fair sales process, they said.
©2020 Bloomberg L.P.