Mortgage

CoStar breaks the CoreLogic bidding warfare and leads rising mortgage charges

The CoStar Group has decided to end its hostile offer to acquire CoreLogic, citing the impact of rising interest rates on the value of real estate-related businesses.

"With interest rates soaring, now is not the time to aggressively buy into the residential mortgage market," said Andrew Florance, CEO of CoStar Group, in a press release released after the market closed on Thursday.

Previously, CoreLogic asked CoStar to increase the cash portion of its $ 7.25 billion offering for the company.

CoStar closed at $ 758.46 on Thursday, down $ 4.34 per share from the previous day. However, in early post-close trading, CoStar shares zoomed to $ 820.

CoreLogic's primary concern regarding CoStar's offering was that its share price had fallen $ 177 per share between February 12, the last trading day before CoStar announced an expanded all-stock offering, and March 3.

CoStar's press release states that while the combination would still add significant value to shareholders in both companies, it feels obliged to maintain a disciplined approach to evaluating potential strategic acquisitions.

"We would like to congratulate Stone Point and Insight Partners on their successful offer to acquire CoreLogic," said Florance. "We thank the Board of Directors and Management of CoreLogic for being involved in the process and congratulate them on a strong rating from their shareholders."

CoreLogic, which ended the trading day at $ 81.79, down $ 1.07 from its previous closing price, continued to slide in post-business trading.

It was trading at $ 78.65 at 4:40 PM.

This marked the first time CoreLogic has traded below the Stone Point / Insight price of $ 80 per share since the deal was announced on February 4th.

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