Magazine article American Banker

Fidelity National's Split into 2 Firms Is on Track

Magazine article American Banker

Fidelity National's Split into 2 Firms Is on Track

Article excerpt

The complicated breakup of Fidelity National Financial Inc. is on track, and the directors of all three companies involved have formally approved the plan.

The Jacksonville, Fla., holding company said Monday that the deal is now expected to close early in the fourth quarter.

The time line for the reorganization seems to have slipped slightly.

In April, when Fidelity announced its plan to turn three interrelated public companies into two separate insurance and technology ones, it said that the process would take 90 to 150 days and that the deal would close by late September.

Daniel Kennedy Murphy, the holding company's senior vice president of finance and investor relations, said the uncertainty comes from the process of putting three sets of registration statements and proxies out to shareholders, after a review by the Securities and Exchange Commission.

"We've tried to guess what would be a reasonable time frame, and we're guessing early in the fourth quarter," Mr. Murphy said.

But he said the operational plan remains the same.

The holding company has two main assets: a 51% stake in the banking technology company Fidelity National Information Services Inc. and an 80% share of the title insurer Fidelity National Title Group Inc.

It also owns a 40% stake in the insurance claims manager Sedgwick CMS Inc. and some other specialty insurance operations, which it will sell to the title insurer. Then, after getting shareholder approval, it plans to distribute its entire stake in the insurer to Fidelity National Title's shareholders. …

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