Highfields Aims to Put 3 on CoreLogic BoardREAL ESTATE: Hedge fund’s choices seen as move on CEO Sunday, May 6, 2012
A trio of candidates nominated to the board of Santa Ana-based CoreLogic Inc. by its largest independent shareholder includes at least one who appears determined to replace the data provider’s chief executive and another who has had run-ins with its predecessor company.
Boston-based Highfields Capital Management LP, which owns about 7.7% of CoreLogic’s shares, last week announced its recommendations for the board of CoreLogic, which specializes in data for the real estate and mortgage industries.
CoreLogic’s board now counts seven members, but the company announced plans in March to bump that number up to nine. The additions are being made in part to appease Highfields, which has questioned the company’s strategy and management in recent months.
The hedge fund’s nominees are Barry Baker, a managing director of Boston-based private equity firm BV Investment Partners; Glenn Christenson, a managing director of Las Vegas-based Velstand Investments LLC; and Farhad Nanji, a managing director at Highfields.
“It is our hope that the availability of numerous high-quality candidates leads you to make the meaningful board changes that are necessary to achieve the company’s full potential,” Highfields officials wrote in a letter to CoreLogic Chairman D. Van Skilling.
The letter said Highfields hopes a contested election of directors will “prove unnecessary.”
If any one of the three Highfields-approved candidates make it onto the board, change would appear more likely at CoreLogic, whose shares are up about 30% for the year. The company now counts a market value of about $1.8 billion.
Call for Ouster
Nanji has previously called for the ouster of Chief Executive Anand Nallathambi, whom the hedge fund holds accountable for what it believes are less-than-stellar earnings and underperforming stock performance since the company was spun off from First American Corp. in 2010.
“We have no faith in the management team or this board to hold the management team accountable,” Nanji told media outlets in February. “Two years have gone by, the company and its shares have underperformed, and he’s not been held accountable.”
Nallathambi has given no sign he plans to step down.
“We are delivering on our plans and financial target,” Nallathambi said late last month in the company’s quarterly call with analysts.
• Headquarters: Santa Ana
• Business: Real estate data provider
• Founded: 2010 (spun out from First American Corp., now known as First American Financial Corp.)
• Ticker symbol: CLGX (NYSE)
• Market value: about $1.81 billion
• Notable: Leading shareholder pushing for change
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