Activist Investors are Seeking Additional Partners to Achieve Necessary Ownership tTreshold to Call Meeting to Replace the CoreLogic Board
There has been a paucity of activist fights to track in 2020, but signs suggest that one of this year’s battles is shaping up to be a bruiser.
Back in June, activist investor Senator Investment Group partnered with strategic holding company Cannae Holdings (ticker: CNNE) to acquire real-estate-data firm CoreLogic (CLGX) at $65 a share. Potential deal activity was welcomed by investors, with shares swiftly climbing above the offering price, and recently trading just above $67. But CoreLogic rebuffed the offer, saying that it “significantly undervalues” the company.
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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. 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.
The duo claims a 15% “economic interest” in CoreLogic, including derivatives, but fell just short of the 10% ownership of common shares needed to call a meeting.
Signs point to a contentious battle ahead. Senator and Cannae’s proposed board nominees include Katherine Rabin, former CEO of proxy advisory firm Glass Lewis, and Gail Landis, a current board member at Morningstar (MORN).
CoreLogic contends that the bid undervalues the company, pointing to its “strong” guidance through 2022—though analysts questioned the rosy 2021-22 outlook.
Buckle up, because this fight is still in the first round.
Write to Carleton English at firstname.lastname@example.org