WASHINGTON (dpa-AFX) - Radian Group Inc. (RDN) issued statement in response to public comments made by Clinton Group Inc. Radian said it is committed to growing its mortgage insurance franchise and retaining its leadership position in the industry by writing as much new, high-quality business as possible, while appropriately managing its legacy portfolio.
The company agreed that all stakeholders should be provided with the most meaningful information about the company, its business and operations. This information includes its legacy books of business, therefore Radian releases important current data related to those books on both a quarterly and monthly basis.
Radian said it values the opinions of its stockholders. The company noted that it has held several recent detailed discussions with the Clinton Group to review ideas and strategies designed to enhance disclosure. The company said it will continue to consider ways to further improve stockholder communications.
Radian said its general policy is not to respond to rumors about the company, including the purported expressions of interest referenced in the Clinton letter.
Earlier today, Clinton Group Inc. announced that it has sent a letter to the Board of Directors Radian Group urging the Company to release detailed information about its legacy mortgage insurance and financial guarantee books or, in the alternative, to provide such information to private equity firms and strategic buyers in order to elicit a bid for the Company.
In its letter, Clinton's Chief Executive Officer encouraged the Company to give shareholders sufficient historical and current data about its exposures to allow shareholders to perform their own calculations of the potential liabilities of the company.
Clinton noted that to the extent shareholder concerns cannot be allayed by more complete disclosure, the best approach for creating shareholder value is to sell Radian to a buyer that has the expertise to fully understand and properly value the legacy book and future business opportunities.
Clinton noted that it is aware of one former industry executive who has expressed serious interest in acquiring Radian at a price significantly above its current trading level.
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