Posted by grapebed on 7/11/13 7:01pm
Msg #476455
LPS, FNF and dramatic drop in refinances
Here is a short research note from the Wall Street firm of Oppenheimer & Co. published today about LPS:
"LPS's go-shop period (in conjunction with Fidelity National (FNF) merger agreement) ended on July 7th with no formal alternative acquisition proposals. Reflecting less likelihood of a superior bid, limited upside (~2%) to the implied merger consideration, and incremental fundamental risk given the recent sharp fall-off in refinance volumes, we downgrade LPS to Perform (from Outperform) and remove our $36 PT.
As superior offers appear unlikely, we view LPS stock upside as limited to the terms of the merger agreement with FNF. FNF shares currently trade at ~ $24, which suggests total consideration to LPS of $32.70 (see Exhibit 1 in our full report, dated July 10), or only 2% above LPS's current share price. We also reduce our estimates to reflect the recent sharp decline in refinance volumes"
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