Boston’s Highfields Capital Management LP has upped its stake in Santa Ana-based First American Corp. and could seek to change or influence control of Orange County’s second largest public company by sales.
Highfields has raised its First American stake to 9.7%, up from 6.7% in April, according to a filing with the Securities and Exchange Commission.
The investor has been talking with First American executives about operational and structural issues and “extraordinary corporate transactions,” including plans unveiled this week to spin off the company’s dominant title business.
Highfields said it plans to continue talking with First American.
On Tuesday, First American said it plans to spin off its title and specialty insurance business into a separate Santa Ana-based public company to be called First American Financial Corp.
The company’s real estate information business, which provides data to mortgage brokers, lenders and others, is set to stay as part of the existing holding company, which is set to be renamed and operate from Santa Ana.
