TEANECK (dpa-AFX) - CoreLogic, Inc. (CLGX) Monday said it would consider a range of strategic alternatives and has retained Greenhill & Co. to serve as a financial advisor to assist a committee of independent directors. The committee would evaluate a wide range of options, including the potential sale or business combination of the company. CoreLogic shares gained over 15 percent in late trading.
Santa Ana, California-headquartered CoreLogic, Inc. provides property, financial, and consumer information, analytics, and services to mortgage originators and servicers, financial institutions, government and government-sponsored enterprises, and other businesses in the United States.
CoreLogic had been spun off from First American Financial Corporation (FAF) in June 2010.
CoreLogic, since its June 2010 separation, had divested its employer and litigation services businesses, outsourced India operations, acquired RP Data Limited, and had implemented aggressive cost cutting and streamlining initiatives.
However, the challenging economic environment and current market conditions had led it to look more closely at a range of alternatives with the assistance of a financial advisor, CoreLogic said. The company said it has formed a committee of independent directors for the purpose, but no assurance was forthcoming that the move would result in any particular transaction.
CoreLogic said the possibilities include cost savings initiatives, an evaluation of the company's capital structure, possible repurchases of debt and common stock, the potential disposition of business lines, the potential sale or business combination of the company and other alternatives.
On August 18, CoreLogic had closed the sale of its Indian unit CoreLogic Global Services Private Limited to Cognizant (CTSH) for approximately $50 million.
During the second quarter of 2011, CoreLogic completed its acquisition of the remaining 60 percent interest in Australia-based RP Data Limited for $157.2 million.
For its second quarter, CoreLogic reported a profit of $31.5 million compared with $24.4 million in the same period of 2010. Operating revenues for the quarter dropped to $396.4 million from $411.0 million last year.
CLGX closed Monday's regular trading at $8.79, down $0.37 or 4.39%, on the NYSE. The stock further gained 15.24% in after hours trade. Over the past year, the stock traded in a range of $7.64 - $20.97.
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