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Battle for CoreLogic heating up, Barron's says » 10:4408/0108/01/20
Back in June, activist…
Back in June, activist investor Senator Investment Group partnered with Cannae Holdings (CNNE) to acquire CoreLogic (CLGX) at $65 a share, which was welcomed by investors, sending shares above the offering price, Carleton English writes in this week's edition of Barron's. But CoreLogic rebuffed the offer, saying that it "significantly undervalues" the company. But CoreLogic rebuffed the offer, saying that it "significantly undervalues" the company. This week, however, the duo turned up the heat on CoreLogic after what it called a series of "delay tactics," including the introduction of a poison pill to prevent a takeover, the authors notes, adding that Senator and Cannae are now seeking another investor to join their side so they can reach the 10% stake needed to call a special meeting in early October and replace nine members of CoreLogic's 12-person board with a slate that will facilitate a sale process. Reference Link
CoreLogic comments on Senator/Canne intent to request special meeting » 11:1507/2907/29/20
CoreLogic commented on an…
CoreLogic commented on an announcement by two of its shareholders, Senator Investment Group LP and Cannae Holdings Inc., that they intend to request a Special Meeting of Shareholders. This action follows their unsolicited June 26 proposal to acquire all outstanding shares of CoreLogic for $65.00 per share in cash. As previously announced, the CoreLogic Board undertook a thorough review of the acquisition proposal in consultation with its independent financial and legal advisors, and unanimously concluded that it significantly undervalues the Company and is not in the best interests of shareholders other than Senator and Cannae. Chairman Paul Folino said, "The Board continues to believe Senator and Cannae's proposal significantly fails to provide appropriate value to our shareholders and does not reflect our strong multi-year outlook for the business - since their June 26 proposal we have increased our 2020 earnings guidance by more than 15% and issued strong guidance for 2021 and 2022. Our outlook is supported by contracted revenue, continued efficiency improvements and our transformed, less-cyclical business mix, which will be further enhanced by our recently announced planned divestitures of two lower-margin businesses. The proposal also does not account for our substantial return of capital, including a 50% dividend increase and repurchase of $1B of shares by 2022. Further, CoreLogic continues to gain momentum as evidenced by the strong results posted last week in which our organic growth rose to 5%, margins increased by 400 basis points and we achieved record levels of free cash flow. As a result, our Board is unanimous and highly confident in its belief that CoreLogic will be able to deliver significantly more value to shareholders than this opportunistic proposal. We will continue to provide full transparency into our business so all our shareholders can participate in CoreLogic's substantial value creation potential."
Cannae, Senator propose nine independent directors for CoreLogic board » 08:2007/2907/29/20
Cannae Holdings and…
Cannae Holdings and Senator Investment Group, LP, which, directly or through affiliated entities, jointly own or have an economic interest equivalent to approximately 15% of the outstanding shares of CoreLogic, issued an open letter to fellow shareholders. In the letter, Cannae and Senator announce that they have initiated the process to call a special meeting of shareholders to elect nine independent directors to the CoreLogic Board of Directors. Cannae and Senator said in the letter: "We will seek to replace a majority, but not the entirety, of the Board. This will not be a vote to sell the Company to us for $65 per share. Rather, it will be a vote to put in place these nine independent directors who will act in the best interest of all shareholders... We appreciate the widespread shareholder support we have received. As we stated in our June 26th letter, we expect that we would be able sign a definitive merger agreement and announce the transaction within one month after the Company provides due diligence access and believe that, once signed, we will be able to consummate the transaction within two to three months. Calling a Special Meeting to replace directors introduces delay and is a suboptimal outcome for all."
Cannae to acquire 20% interest in Black Knight entity for $290M, $100M in debt » 09:1807/2707/27/20
Cannae Holdings announced…
Cannae Holdings announced that Black Knight has entered into a definitive equity purchase agreement with affiliates of private equity firm GTCR, to purchase Optimal Blue, a provider of secondary market solutions and actionable data services, for an enterprise value of $1.8B, subject to customary purchase price adjustments. In connection with the acquisition, Black Knight will combine its Compass Analytics business with Optimal Blue in a newly formed entity and sell a minority interest in the new entity to both Cannae and Thomas H. Lee Partners, or THL. Cannae and THL will each own approximately 20% of the new entity. Black Knight will own approximately 60% of the new entity. The acquisition is being funded with cash on hand, debt financing, and equity contributions of $290M each, or $580M total from Cannae and THL. In addition to its equity contribution, Cannae will invest $100M in debt into the newly formed entity.
Fly Intel: Top five analyst downgrades » 10:1107/2407/24/20
TSLA, INTC, XRX, EXC, CLGX
Catch up on today's…
Catch up on today's top five analyst downgrades with this list compiled by The Fly: 1. Tesla (TSLA) downgraded to Neutral from Outperform at Daiwa with analyst Jairam Nathan saying he sees a balanced risk/reward scenario going forward. Positive catalysts such as continued visibility towards strong volume growth and Battery Day in September are largely reflected in current valuations. 2. Intel (INTC) was downgraded to Underperform from Market Perform at Bernstein and Northland, to Underperform from Outperform at Exane BNP Paribas, to Underweight from Equal Weight at Barclays, to Hold from Buy at Deutsche Bank, and to Neutral from Buy at Roth Capital and BofA. 3. Xerox (XRX) downgraded to Underweight from Neutral at JPMorgan with analyst Paul Coster saying expectations are low heading into the company's Q2 print as COVID-19 related headwinds accelerated in the quarter with the shift to work from home weighing on variable usage and new equipment sales. 4. Exelon (EXC) downgraded to Underperform from Neutral at Mizuho with analyst Paul Fremont saying he sees a "growing likelihood" that Exelon will issue equity to bolster its balance sheet after S&P revised its outlook of the company to negative. 5. CoreLogic (CLGX) was downgraded to Neutral from Buy at Compass Point and to Equal Weight from Overweight at Stephens. This list is just a portion of The Fly's full analyst coverage. To see The Fly's full Street Research coverage, click here.
Stephens sees limited further upside for CoreLogic shares, cuts to Equal Weight » 09:0007/2407/24/20
As previously reported,…
As previously reported, Stephens analyst John Campbell downgraded CoreLogic to Equal Weight from Overweight with a price target of $69, up from $57. While he acknowledge CoreLogic is performing at level that is likely its "highest ever," he sees too much uncertainty on the road to targets that need the support of a continued greater than $2.3T U.S. mortgage backdrop, Campbell tells investors. Even if a takeover bid comes up empty, he believes that the company will be better off "when the dust settles no matter the outcome," noting that management has already put into motion several value creation drivers, though he sees limited upside from current levels.
CoreLogic downgraded to Equal Weight from Overweight at Stephens » 08:5607/2407/24/20
Stephens analyst John…
Stephens analyst John Campbell downgraded CoreLogic to Equal Weight from Overweight with a price target of $69, up from $57.
CoreLogic downgraded to Neutral from Buy at Compass Point » 07:2407/2407/24/20
Compass Point analyst…
Compass Point analyst Matthew Gaudioso downgraded CoreLogic to Neutral from Buy.
CoreLogic up 1.3% after reporting Q2 results, guidance, dividend increase » 08:2507/2307/23/20
Shares are u[ 1.3% in…
Shares are u[ 1.3% in pre-market trading to $69.25 per share.
CoreLogic commits to $1B share repurchase by end of FY22, at least $500M in FY20 » 07:4607/2307/23/20
CoreLogic said in its Q2…
CoreLogic said in its Q2 earnings release, "The Company expects to repurchase at least $500 million of shares in 2020, $300 million of shares in 2021 and the remaining $200 million of shares in 2022 to complete its current $1 billion authorization. The $1 billion repurchase program is expected to reduce current share count by more than 15% by 2022. Our share repurchase program is expected to be more than 10% accretive to projected 2021 Adjusted EPS."