CoreLogic (CLGX) - Get Report was soaring Friday after Cannae Holdings (CNNE) - Get Report and Senator Investment Group submitted an unsolicited bid for the property and mortgage information services company valued at about $5.16 billion.
Shares of the Irvine, California company were climbing 28% to $67.72. Canne was off about 1% to $39.42.
Cannae and Senator Investment jointly own about 15% of CoreLogic's shares outstanding and they offered to buy the company for $65 a share.
"Despite its strong market position as a provider of data and analytics for the real estate and mortgage industries," Cannae and Senator said in a letter to CoreLogic's board of directors, "we believe the Company will not achieve its full potential under its current strategic plan. We therefore believe the proposed transaction is in the best interests of all the Company’s stakeholders."
The all-cash proposal represents a premium that is 37% in excess of the company’s unaffected stock price and 34% in excess of the company’s 30-day volume-weighted average price, the letter said.
"As one of the largest shareholders in the Company, we believe this proposal delivers full value to shareholders and is well in excess of what the Company can achieve under its current plans," the letter said.
This belief is demonstrated, the letter continued, "by the fact that we are offering shareholders, in a transaction we are prepared to close within a few months, a premium that is greater than the 26% share price appreciation it took the Company the past five years to accomplish."
"We were disappointed to see the company take the highly unusual step of raising quarterly guidance five days before the end of the quarter and suspect this was a defensive move in light of the high trading volume and knowledge of our interest in the Company," the letter said
Nonetheless, the letter continued, "we are optimistic that we can still engage constructively with the Board. Please understand, however, as demonstrated by our sizable investment in the Company, that we are committed to this transaction."
CoreLogic said in a statement that it had no knowledge of any acquisition proposal prior to issuing its revised guidance.
"While Cannae and Senator had not previously expressed acquisition interest to the Company," the company said. "CoreLogic’s Board of Directors, consistent with its fiduciary responsibilities, will carefully review the proposal with the assistance of financial and legal advisors to determine the course of action it believes is in the best interests of the Company and its shareholders."