Failed CoreLogic Board Has Underperformed its Peers by 145% Says Investor Group

CoreLogic has “never” achieved even one of its long-term targets alleges letter to stockholders

by Dave McKenna, Editor CREB on September 28, 2020


The current Board of Directors of CoreLogic have presided over years of failure according to an open letter sent to CoreLogic stockholders by Cannae Holdings and Senator Investment Group head of a special meeting to replace board members.

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According to the letter, the full text can be read here, the CoreLogic board has failed to perform to the same level as its peers. “Measured against peers selected by CoreLogic’s own Board, the Company has underperformed by 145% over the past 5 years. Against any relevant peer group1 over any relevant time period, the underperformance is shocking,” the letter said.

CLGX performance vs1 Yr 3 Yrs5 Yrs10 Yrs
Peers Selected by CoreLogic’s Own Board-4%-77%-145%-532%
Broader Peer Group Set-8%-90%-161%-634%
source: Cannae Holdings and Senator Investment Group

The letter to all CoreLogic stockholders asserts a number of failures of the current Board, including that “CoreLogic has set and reset its three multi-year business objectives over nine times and has never met a single one of them”. The company is in the bottom 4% of the Russell 3000 in both frequency and severity of negative stock reactions. The letter also asserts that the Board has spent fifty percent of its $3.4 billion market capitalization to acquire just $702 million in revenue.

The Cannae and Senator letter complains that the CoreLogic board has refused to engage constructively with the investor group and are not acting in the best interest of the stockholders. They point to “misleading and disingenuous” statements regarding the offer from the investment group to acquire all outstanding shares.

In addition, the statement alleges that the Board has incited unjustified regulatory scrutiny of the proposed transaction as a defensive tactic. In general, the letter accuses the Board of general fiduciary failure and self-interested action.

Cannae Holdings and Senator Investments have demanded and obtained a Special Meeting of the Board to consider a replacement slated of new outside board members. The special meeting will be held on Nov 17.