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CoreLogic in acquisition talks after $80 per share offers

28th October 2020 - Author: Matt Sheehan

Property information and analytics provider CoreLogic has confirmed that it is in talks with third parties after reports suggested it had received multiple acquisition offers valuing the company at or above $80 per share.

corelogic-logoThis development may put an end to the ongoing saga between CoreLogic and investors Senator and Cannae, who have been attempting to oust CoreLogic’s board after it rejected a previous bid from them.

Senator and Cannae originally proposed to buy CoreLogic for $65.00 per share and later came in with a revised second offer of $66.00 per share.

CoreLogic argued that both offers significantly undervalued the company, but Senator and Cannae accused the firm of ignoring the best interests of its shareholders engaging in “poison pill” defence tactics.

But now it appears CoreLogic could be vindicated, with new offers valuing the company at far above what Senator and Cannae were willing to pay.

“In light of recent market speculation, CoreLogic today confirmed it is engaging with third parties indicating preliminary interest based on public information in the potential acquisition of the Company at a value at or above $80 per share,” the company said in a recent statement.

Reports from CNBC suggest that multiple parties including private equity firms are interesting in pursuing a deal, and that CoreLogic may have already signed a non-disclosure agreement with at least one potential buyer.

In particular, sources told the news outlook that CoStar Group could be among the potential bidders.

For its part, CoreLogic stressed that “no decision has been made to enter into a transaction at this time,” and gave no assurance that it would enter into a transaction in future.

“The Company does not intend to comment further on market speculation or disclose further developments unless and until it deems further disclosure to be appropriate or required,” CoreLogic added.

Senator and Cannae, who together hold a 15% stake in CoreLogic, had hoped to convince shareholders to replace nine members of CoreLogic’s Board on November 18th with new directors of their choosing.

They have repeatedly written to shareholders to stress CoreLogic’s underperformance in recent years and to criticise the firm’s conduct in engaging with their offer.

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