Property information and analytics provider CoreLogic has held firm on its rejection of an acquisition offer from Senator Investment Group LP and Cannae Holdings Inc. after meeting with the two investors.
CoreLogic announced last week that its Board had unanimously rejected an offer to acquire all outstanding common shares for $65.00 per share.
It argued that the offer significantly undervalued the company, raised serious regulatory concerns, and was not of value to shareholders.
But Senator and Cannae hit back by suggesting that CoreLogic was ignoring the interests of its shareholders, overstating its profit guidance, and raising a “smokescreen” of regulatory issues.
The firms also accused CoreLogic of using a “poison pill” defence tactic to discourage a takeover bid.
This was in reference to CoreLogic’s decision to increase its share repurchase authorization to $1 billion, which will effectively dilute the 15% ownership interest of Senator and Cannae.
Despite these exchanges, the parties agreed to meet to further discuss the acquisition offer, with CoreLogic using the talks to raise issues about deal certainty, including financing and regulatory concerns.
However, according to CoreLogic, the meeting ended with neither side willing to alter its original position.
“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 new statement.
“We are open to continuing our dialogue, but we are focused on delivering superior shareholder value by executing on our plan,” it added.
“We are experiencing strong momentum across our business and will update the market when we release our second quarter earnings.”
