taken from PRess Release on Fidelity National website:
“…The total purchase price for Commonwealth and Lawyers is approximately $282 million. Chicago Title Insurance Company (“Chicago Title”) and Fidelity National Title Insurance Company (“Fidelity National Title”) will pay a total of approximately $135 million in cash to LFG. Additionally, FNF will pay LFG a total consideration of approximately $147 million consisting of $47 million in cash, a $50 million subordinated note due in 2013, with interest at the 5-year treasury rate at closing plus 1 percent and approximately $50 million in FNF common stock valued at no less than $14.00 per share. The agreement also calls for Fidelity National Title’s cash purchase of United for statutory book value at closing. United’s statutory book value was approximately $16 million as of September 30, 2008….”
AS per the website press release, FNF is one of the nation’s largest title insurance companies. It’s title insurance underwriters (including Fidelity national and Chicago) issue approximately 27% of all title insurance policies in the US.
What are the potential implications of this Stock Purchase Agreement? What if you are a tiitle agent representing Commonwealth or Lawyers?
Comments and discussion welcomed
Thanks for posting the article, was certainly a great read!
The Fidelity deal is not quite a done deal yet. Since LandAmerica declared bankruptcy, the deal has to be approved by the bankruptcy court. In the mean time, Stewart Title has also made an offer to purchase. Both the Fidelity and the Stewart deals have been approved by the Nebraska Dept of Insurance where LandAmerica was incorporated but now the bankruptcy court will rule on which deal will be better for LandAm’s creditors.
A sale-approval hearing has been scheduled for today in U.S. Bankruptcy Court in Richmond, Va. The sale is subject to final approval by the court.
Very interesting information Robin. I am the chairperson of Financial Executives Networking Group for the local chapter Monmouth and Ocean Counties in New Jersey. Some of my members would be very interested in this blog post, let me know if it is ok to put a link to this on my monthly e-newsletter to the chapter.
Thanks, keep up the good work.
Jim Farrell
CFO
Single Throw