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Frank Martell

Frank Martell

Irvine-based CoreLogic Inc. (NYSE: CLGX), the real estate data provider that recently agreed to sell itself for $6 billion, said a rival bid by CoStar Group Inc. (Nasdaq: CSGP) wasn’t sufficient.
CoStar earlier this week increased its offer to include $6 in cash a share, up from an all-stock transaction announced on Feb. 16 that valued CoreLogic at $95.76 at that time.
CoStar needs to increase its cash offer beyond $6 a share and complete the deal faster than CoStar’s 15-month timeline for antitrust approval, CoreLogic Chief Executive Frank Martell said in a letter to CoStar CEO Andrew Florance.

“CoStar and the combined business would have sufficient capacity to finance all or a majority of the transaction in cash,” Martell wrote in his letter. “We continue to believe that there is strategic potential in the combination of our two businesses and we request that you reconsider your positions on these important terms.”

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Since CoStar’s Feb. 16 proposal, its shares have fallen 19%, representing “a significantly lower implied total per share value,” Martell said. With CoStar’s share decline, the offer values CoreLogic at $84.60 a share, Bloomberg News reported today.

CoreLogic, which last year fought off a proxy battle where activist investors offered $66 a share, on Feb. 4 announced it had accepted an $80 a share offer from Stone Point Capital and Insight Partners. CoreLogic today said the $80 offer is progressing and a close is expected in the second quarter.

CoreLogic shares were unchanged at $82.93 and a $6.1 billion market cap. CoStar shares fell about 0.7% to $752.15 and a $30 billion market cap. On Feb. 12, the trading session before announcing its bid, CoStar shares closed at $939.76.