CoStar Group, private equity firms vying to acquire CoreLogic -sources

By Greg Roumeliotis

Oct 28 (Reuters) - CoStar Group Inc CSGP.O and a private equity consortium led by Warburg Pincus and GTCR are among the bidders seeking to acquire U.S. property data and analytics company CoreLogic Inc CLGX.N, people familiar with the matter said on Wednesday.

The interest in CoreLogic comes after investment firms Cannae Holdings Inc CNNE.N and Senator Investment Group LP made a $7 billion offer for the company and launched a campaign to take over its board of directors.

Cannae and Senator, whose latest offer was for $66 per share in cash, are not being allowed to carry out due diligence on CoreLogic because the company considers their bid too low, the sources said. Some of the other suitors, however, have submitted expressions of interest to CoreLogic for more than $80 per share, and are being allowed to carry out due diligence, the sources added.

The sources requested anonymity because the matter is confidential. CoreLogic, Cannae and Senator declined to comment, while CoStar, Warburg Pincus and GTCR did not immediately respond to requests for comment.

CNBC first reported that CoreLogic had received potential bids. CoreLogic shares were up 13.2% at $77.27 on Wednesday morning in New York.

CoreLogic had said it was not in the best interest of its shareholders to open its books to Cannae and Senator for an offer that undervalues the company. The two investment firms have amassed a 15% stake in CoreLogic and have nominated nine directors to the company's 12-member board. CoreLogic shareholders are due to vote on the board's composition on Nov. 17.

Cannae and Senator have said CoreLogic is enjoying the peak of the mortgage cycle, given that record-low interest rates have fueled a boom in parts of the property market. They have argued that the consortium is an ideal buyer of CoreLogic because Cannae's chairman, Bill Foley, has over three decades' experience as a financial industry operator. Yet their sizeable stake in CoreLogic would also deliver them a big gain were another suitor to clinch a deal for the company.

(Reporting by Greg Roumeliotis in New York Additional reporting by Svea Herbst in New York Editing by Matthew Lewis)

((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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