CoreLogic Rejects $65-Share, or $7 Billion, Takeover Bid

CoreLogic turned down a $65-a-share, or $7 billion, takeover bid as undervaluing the real estate research firm.
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CoreLogic  (CLGX) - Get Report shares rose after the real estate research firm rejected a $65-a-share, or $7 billion, takeover offer from Cannae Holdings  (CNNE) - Get Report  and Senator Investment Group.

Cannae, the Las Vegas operator of a number of businesses in restaurants, software, information services and more, and Senator, the New York hedge-fund manager, hold a 15% equity stake in CoreLogic. They'd made the cash proposal in June.

“After a careful and thorough review, conducted in consultation with our independent financial and legal advisors, the board unanimously rejected the proposal,” CoreLogic said in a statement.

The proposal "significantly undervalues CoreLogic, is opportunistically timed, fails to address serious regulatory concerns, and is not in the best interests of shareholders other than Senator and Cannae.”

The Irvine, Calif., company's board adopted a so-called poison-pill defense designed to make a hostile takeover prohibitively expensive.

Cannae and Senator said last week that they already have enough shares to call a special meeting, Reuters reports.

Meanwhile, CoreLogic increased its 2020 revenue estimate by 9% at the midpoint to a range of $1.84 billion to $1.88 billion.

It raised its adjusted-earnings-per-share guidance by 21% at the midpoint to a range of $3.40 to $3.60.

And it lifted its 2020 forecast for adjusted earnings before interest, taxes depreciation and amortization by 12% at the midpoint to a range of $565 million to $585 million.

A survey of analysts by FactSet produced consensus estimates for CoreLogic of full-year adjusted earnings of $3.04 a share on revenue of $1.73 billion.

CoreLogic shares recently traded at $68.35, up 2%. They have doubled over the past three months.