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U.S. property data and analytics company CoreLogic Inc. rebuffed peer CoStar Group Inc.’s sweetened buyout offer, saying it required improvement in terms of value.
Earlier this week, CoStar raised its offer to buy CoreLogic by adding another $450 million to its original $6.9 billion all-stock proposal, hoping to seal a deal and triumph over another competing bid by private equity firms.
Under the new proposal, CoreLogic shareholders would receive $6 per share in cash and 0.1019 shares of CoStar’s common stock in exchange for each share of CoreLogic, worth a total of $90 per share when it was unveiled on March 1.
Since then, CoStar’s shares have been in a downward spiral, weighing on the value of its bid. Its offer was worth $83.73 per share based on Tuesday’s closing price.
“$6 per share in cash does not meaningfully reduce CoreLogic shareholders’ exposure to the concerning volatility of your stock,” CoreLogic said in a letter addressed to CoStar on Thursday, adding the revised proposal represented a significantly lower implied total per share value than its previous offer.
Despite CoStar sweetening its bid by adding some cash on Monday, the primarily stock offer was still worth less than when it was unveiled on Feb. 16, because of the decline in its shares.
CoreLogic also said its $6-billion agreement to sell itself to private equity firms Stone Point Capital and Insight Partners announced last month remained in full force.
(Reporting by Akanksha Rana in Bengaluru and Greg Roumeliotis in New York; Editing by Krishna Chandra Eluri and Nick Zieminski)