CoStar Group Inc. boosted its offer to acquire
CoreLogic’s
He added he was “stunned” to read about the deal.
CoStar’s newest offer represents an equity value of approximately $6.9 billion, a 20% more than the earlier offer, CoStar said in a statement.
“We do not believe the pending transaction maximizes value for CoreLogic stockholders and we continue to believe in the strong strategic rationale for the combination of our two companies,” Florance said in the letter. “The fact that CoreLogic stock continues to trade well above the pending transaction price is a clear indication that the shareholders agree with us.”
CoreLogic has become an appealing target as the
CoreLogic shares were up 6.1% at $87 as of 9:49 a.m. in New York on Tuesday.
Funds managed by Stone Point Capital and Insight Partners agreed to buy CoreLogic earlier this month in a deal with an equity value of about $6 billion. That came after CoStar made an offer worth $86 a share, according to Bloomberg calculations.
Under the terms of the newest proposal, CoreLogic shareholders would receive 0.1019 shares of CoStar in exchange for each share of CoreLogic stock, representing a value of $95.76 a share based on CoStar’s closing price Friday.
Irvine, California-based CoreLogic launched a strategic review in November amid a boardroom battle with investors Cannae Holdings Inc. and Senator Investment Group. The duo subsequently won three seats on CoreLogic’s board.
The investors had offered to buy the company in June but pulled out of the sales process after CoreLogic said it had received indications of interest at $80 or above. The duo, which said they weren’t interested in acquiring CoreLogic at that price, had offered $66 a share to buy the company.
