Why CoreLogic Stock Jumped Today
Shares of CoreLogic (NYSE: CLGX) have jumped today, up by 13% as of 2:30 p.m. EDT, after the company confirmed that it was engaged in acquisition negotiations with potential bidders. Trading was halted briefly earlier this morning due to volatility but has since resumed.
Numerous media outlets including Bloomberg, CNBC, and Reuters reported this morning that the real estate data provider was discussing a potential buyout with CoStar Group (NASDAQ: CSGP) and a consortium of private equity firms led by Warburg Pincus and GTCR. The news comes shortly after Cannae Holdings (NYSE: CNNE) and Senator Investment Group had increased their offer for CoreLogic by $1 to $66 per share, which CoreLogic said last month was too low.
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"In light of recent market speculation, CoreLogic today confirmed it is engaging with third parties indicating preliminary interest based on public information in the potential acquisition of the Company at a value at or above $80 per share," the company said in a statement.
The stock is now trading within a few dollars of that threshold, so a buyout at $80 per share only represents modest upside from current prices at this point.
"No decision has been made to enter into a transaction at this time, and the Company can offer no assurance that it will enter into any transaction in the future or, if entered into, what the terms of any such transaction would be," the company warned.
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