Shares of real estate research firm CoreLogic (CLGX) - Get CoreLogic, Inc. Report rose Tuesday after competitor CoStar Group (CSGP) - Get CoStar Group Inc. Report bid for the company, topping an earlier proposal from Stone Point Capital and Insight Partners.
CoreLogic traded at $86.50 in premarket trading, up 5.5%, after hitting a record high of $82.20 earlier. It has jumped 10% over the last month through Friday amid takeover speculation. CoStar slid 5.67% to $886.50.
Under terms of the proposal, CoreLogic shareholders would receive 0.1019 share of CoStar Group common stock in exchange for each share of CoreLogic common stock, representing a value of approximately $95.76 a share based on CoStar Group’s closing share price on Feb. 12. That values CoreLogic around $7 billion.
The bid stands about 20% above the investment companies’ earlier bid of $5.8 billion or $80 a share. That proposal consisted solely of cash.
As for CoStar’s view of that earlier bid, “given our substantial engagement since early December, we were stunned to read about the acquisition of CoreLogic by Stone Point Capital and Insight Partners,” the company said in a statement.
“Their cash bid of $80 per share was materially less than our last all-stock offer, which had a headline value of $86.30 per share. The decision to accept the lower $80 per share bid from a sponsor instead indicates a failure to appropriately value the synergies of our proposal as a strategic bidder,” CoStar said.