MGIC, Radian set meeting dates for stockholders to approve merger

By Lisa Kerner

Charlotte, N.C., April 9 - MGIC Investment Corp. and Radian Group Inc. set meeting dates for shareholders to consider the companies' planned merger and formation of a new mortgage and credit risk insurance company called MGIC Radian Financial Group Inc.

The MGIC annual meeting will be held on May 10 in Milwaukee, with shareholders of record as of March 9 eligible to vote on the merger, the appointment of three directors and any other business.

Radian will hold its annual meeting on May 9 in Philadelphia. Stockholders of record as of March 19 are asked to approve the merger, elect 10 directors and decide any additional business.

Under the Feb. 6 agreement, each share of Radian common stock will be exchanged for 0.9658 of a share of MGIC common stock based on Feb. 5 closing prices.

Each company's board of directors approved the transaction, which is expected to close in the fourth quarter of 2007, according to a company news release.

The 30-day waiting period for the proposed Radian/MGIC transaction was not extended and expired on April 5.

Following the merger, MGIC Investment's chairman and chief executive officer Curt S. Culver will hold the same positions at the new company. Radian Group's chief executive officer S.A. Ibrahim will be president and chief operating officer of MGIC Radian.

"The strategic combination of Radian and MGIC parallels the consolidation that has taken place within the mortgage industry, and we strongly believe that it will help us to remain successful in this dynamic and changing landscape," Ibrahim said in a letter to stockholders included in an 8-K filing with the Securities and Exchange Commission.

"With our complementary businesses, we are confident that the new company will be a premier mortgage insurance and diversified financial services provider. It is my firm belief that the successful platform we have built, combined with the excellent franchise and operations of MGIC, will create additional value for our stockholders."

MGIC Investment is a holding company and a private mortgage insurance provider based in Milwaukee.

Radian Group is a credit risk management company based in Philadelphia.

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