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Shares of LandAmerica have jumped over 90%, while Fidelity National stock has surged over 30% on the news. Other substantial gainers include shares of First American Corp. (FAF | Quote | Chart | News | PowerRating), which have risen over 16%, and Allianz SE (AZ | Quote | Chart | News | PowerRating) stock which has climbed nearly 12%.
By 10:50 am Eastern Time, LandAmerica stock was up $4.33 at $9.08 per share, while Fidelity National shares were up $2.47 at $10.82. Meanwhile, First American shares were up $3.04 at $22.55 and shares of Allianz were up 88 cents at $8.46.
Other stocks posting notable gains include AXA Group (AXA | Quote | Chart | News | PowerRating), which recently reported its nine-month total revenue figures, ING Group (ING | Quote | Chart | News | PowerRating) and Old Republic International (ORI | Quote | Chart | News | PowerRating).
Before the opening bell on Friday, Fidelity National and LandAmerica Financial announced the signing of a definitive merger agreement under which Fidelity National will acquire LandAmerica Financial. As per the terms of the merger agreement LandAmerica Financial shareholders will receive 0.993 shares of Fidelity National common stock for each share of LandAmerica Financial common stock.
The transaction has been structured to reduce the combined debt of LandAmerica Financial and Fidelity National by approximately $250 million prior to the closing of the merger agreement. This will be accomplished by Fidelity National's title insurance subsidiaries providing liquidity equal to the statutory book value of LandAmerica Financial's two primary title insurance subsidiaries, Commonwealth Land Title Insurance Co. and Lawyers Title Insurance Corp., immediately prior to the closing of the merger agreement. These proceeds will be used to repay outstanding indebtedness under LandAmerica Financial's revolving credit facility and private placement senior notes and, potentially, existing Fidelity National debt.
The merger agreement also provides a due diligence contingency for Fidelity National that expires on November 21, 2008, during which time Fidelity National will conduct due diligence procedures on LandAmerica Financial's operations and financial condition.
In connection with the signing of the merger agreement, Chicago Title Insurance Co., a subsidiary of Fidelity National, has agreed to provide a $30 million stand-by secured credit facility as a means of potential additional liquidity for LandAmerica Financial.
After the closing bell on Thursday, AXA announced a 0.9% decline in total Revenue for the nine-month period to EUR 69.458 billion from EUR 71.652 billion last year.
Life & Savings net inflows totaled EUR 7.8 billion year-to-date, while Property & Casualty growth revenues increased 2.7% to EUR 19.631 billion from EUR 20.031 billion in the prior year.
Asset Management business for the period was impacted by the financial turmoil and recorded EUR 10 billion net outflows and revenues were down 6.9% at EUR 3.059 billion compared to EUR 3.621 billion in the previous year.
Further, the company said it expect to come out of the current turmoil stronger and better positioned.
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