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CoStar Group<\/strong> announced that is bowing out of the multi-billion dollar takeover bid for CoreLogic after the firm’s board rejected CoStar’s latest offer, valued at over $7 billion.<\/p>\n In February, CoStar made an offer to acquire CoreLogic for close to $97 a share, roughly 20% higher than the accepted offer Stone Point Capital<\/strong> and Insight Partners<\/strong> made earlier that month, which was about $80 a share, all in cash.<\/p>\n The updated bid put CoreLogic’s share price closer to $90 a share, a move the CoreLogic board did not feel was “superior” to its prior bid.<\/p>\n “We appreciate your inclusion of cash consideration that, as we expressed in our prior letter and had discussed with you previously, helps to provide greater certainty of value. However, $6 per share in cash does not meaningfully reduce CoreLogic shareholders’ exposure to the concerning volatility of your stock,” said Frank Martell, president and CEO of CoreLogic in a letter to Andrew Florance, CoStar’s CEO and president.<\/p>\n Because of rising interest rates that will affect the refi mortgage market,<\/a> CoStar said CoreLogic’s value had declined, and it was done negotiating. About 50% of CoreLogic’s revenues are tied directly to mortgage volumes. <\/p>\n \u201cWith interest rates moving up, now is not the time for us to aggressively buy into the residential mortgage market,\u201d Florance said in a statement.<\/p>\n Since the summer, CoreLogic had been battling with investors who jointly own or have an economic interest equivalent to approximately 15% of CoreLogic\u2019s outstanding common stock. In a July letter sent to CoreLogic\u2019s board of directors<\/a>, Cannae Holdings<\/strong> and Senator Investment Group<\/strong> proposed buying the firm in an all-cash offer for $66 a share.<\/p>\n The investors\u00a0dropped the CoreLogic takeover bid<\/a>\u00a0on Nov. 2 after CoreLogic confirmed it was exploring multiple offers to\u00a0sell at or above $80 per\u00a0<\/a>share. Cannae and Senator still exerted pressure on shareholders to fully replace the board with their own nominees.<\/p>\n A compromise was reached<\/a> on Nov. 24 following a proxy vote was held that replaced three of the 12 directors on CoreLogic\u2019s board with that of the investment groups\u2019 nominees.<\/p>\n Though no formal announcement has been made by CoreLogic, Stone Point Capital or Insight Partners, Florance congratulated the investment <\/a>companies on their successful bid to acquire CoreLogic.<\/p>\n Also this week, a judge in Delaware ruled that CoStar will have to pay a $52 million break fee to RentPath<\/strong> after its failed acquisition of the residential rental portal.<\/p>\n RentPath pulled out of a $585 million deal in December, after federal regulators sued on the grounds that it would violate antitrust laws<\/a>. Redfin<\/strong> announced<\/a> last month that it would buy RentPath for $608 million, pending approval from bankruptcy court and the Federal Trade Commission.<\/p>\n The post CoStar drops bid for CoreLogic citing market volatility<\/a> appeared first on HousingWire<\/a>.<\/p>\n