CoreLogic Ex-CEO Opposes Cannae Bid

Kennedy Enterprises, a firm run by the former CEO and chairman of the real estate data company, will vote its 1.3 million shares against a control slate of dissident director candidates nominated by Cannae and Senator Investment.

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An investor with historic ties to CoreLogic Inc. (CLGX) on Monday, Oct. 5,  said it would vote its shares against a control slate of dissident director candidates nominated by Cannae Holdings Inc. (CNNE) and Senator Investment Group LP to back their unsolicited $6.9 billion acquisition bid for the property data and analytics company.

Specifically, Kennedy Enterprises LP’s General Partner Parker Kennedy said CoreLogic has an “excellent” management team and board, combined with “strong assets, compelling market advantages” that will deliver “superior returns.. far in excess” of the Senator and Cannae bid.

Kennedy said it has been one of the property data and analytics company’s major long-term investors, but does not disclose how long its been an investor.

While Kennedy does not disclose exactly when it acquired its stake, according to relationship mapping service BoardEx, a sister company of The Deal, Kennedy has a long history with CoreLogic. 

He held several executive roles at CoreLogic over the years including the post of chairman and CEO between 2004 and 2010. He was the property data and analytics company’s executive chairman between 2010 and 2012 and is still chairman at First American Financial Corp. (FAF), a title insurance and settlement services firm that spun off CoreLogic in 2010.

The investor owns 1.3 million shares of CoreLogic, representing about 1.6% of CoreLogic’s shares outstanding.

CoreLogic has scheduled a special shareholder meeting on Nov. 17 to vote on the dissident control slate of director candidates.

Kennedy appears to have stepped down from CoreLogic’s board in 2012 under pressure from investors. Activist investor Highfields Capital Management LP, in March 2012 issued a release noting that it had privately urged CoreLogic’s then-chairman, David Van Skilling, to “address the conflicts and potential anti-trust violations inherent in Parker Kennedy’s service as executive chairman” of both CoreLogic and First American Financial.

The activist fund noted in the 2012 release that “reluctantly and belatedly” Kennedy stepped down from CoreLogic.

In addition, Kennedy is still chairman of First American Financial.

The Kennedy Enterprises’ statement issued Monday was provided to The Deal by the same public relations firm that represents CoreLogic.

Cannae and Senator already own about 15% of the real estate data analytics company, including roughly 9.9% in equity.

On Sept. 23, Cannae and Senator filed their definitive proxy statement to elect their change of control slate of directors.

On Sept. 15, CoreLogic rejected a slightly higher $66 a share unsolicited bid offered by Cannae and Senator. The proposal increased their all-cash offer by about $80 million, to $66 a share from $65 a share, but the duo added they could improve their offer more if permitted to conduct a due diligence.

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About the author

Ronald Orol
Senior Editor at | + posts

Ronald Orol leads coverage of activist hedge fund managers, a high-profile group of corporate investors who press for blockbuster deals and were the subject of his book “Extreme Value Hedging: How Activist Hedge Fund Managers Are Taking on the World.” Ron produces the Activist Daily and Activist Weekly briefings, which offer exclusives, trend pieces and breaking analysis about insurgent investors and their M&A efforts. Ron also authored “Corporate Governance in the Era of Activism,” a digital handbook for CNBC’s Jim Cramer. He previously worked as a financial regulation and activism reporter at MarketWatch and Dow Jones Newswires.

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