LandAmerica amended title insurance underwriter sale terms approved

By Caroline Salls

Pittsburgh, Dec. 22 - LandAmerica Financial Group, Inc. received court approval of the amended terms of the sale of its two principal title insurance underwriters to Fidelity National Financial, Inc., according to a Fidelity National news release.

The underwriters being sold are Commonwealth Land Title Insurance Co. and Lawyers Title Insurance Corp.

Specifically, Fidelity National said the amended terms will reduce the total purchase price for Commonwealth and Lawyers to about $235 million.

According to the release, Chicago Title Insurance Co. and Fidelity National Title Insurance Co. will pay a total of $135 million in cash to LandAmerica.

Additionally, Fidelity National Financial will pay LandAmerica a total consideration of $100 million, consisting of a $50 million subordinated note due in 2013, with interest at the five-year treasury rate at closing plus 100 basis points, and $50 million in Fidelity National Financial common stock.

Also, Fidelity National said the Nebraska rehabilitation court has issued an order to release Commonwealth and Lawyers from rehabilitation, subject to the closing of the acquisition of the two underwriters, which was expected to take place on Dec. 22.

LandAmerica, a title insurance underwriter based in Glen Allen, Va., filed for bankruptcy on Nov. 26 in the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 08-35994.

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