Investor activists seeking to buy CoreLogic Inc. (NYSE: CLGX), an Irvine-based provider of property data, today called for a special meeting to replace its current board of directors.
CoreLogic “has deployed a `scorched Earth’ defense,” said a letter to investors from the activists, Cannae Holdings Inc. and Senator Investment Group LP.
The two activist investment firms, led by Bill Foley who was well known in Orange County business circles in the 1990s, on June 26 made a $7 billion takeover offer to buy each share for $65 in cash. The offer places CoreLogic’s equity value at $5.2 billion and its debt around $1.8 billion.
CoreLogic has rejected the offer, saying it must be higher before it allows the activists to look at non-public information.
The activists today accused CoreLogic of increasing its share count to dilute their beneficial ownership from 15% to below 10% to prevent them from calling for a special meeting, among other defensive actions.
Among the nine proposed directors are executives who have much experience in proxy battles, including a former chief executive of governance firm Glass, Lewis & Co., a former managing director at Donaldson, Lufkin and Jenrette Securities and a current director at Morningstar.
Corelogic shares closed today at $68.57, an indication that investors believe the activists will have to raise their bid.