Fidelity Plans BofA Loan for Merger
Fidelity National Financial Inc. said Monday it has lined up financing for its proposed $1.2-billion acquisition of rival Chicago Title Corp.
The Irvine-based title company said it would borrow $800 million from Bank of America to pay the cash portion of the Chicago purchase and to refinance some existing debts. Fidelity Chairman William P. Foley II stressed that the financing commitment brings “added certainty” to the Chicago deal.
In recent weeks, the falling stock prices of both Fidelity and Chicago have raised questions among some analysts about whether the deal would close.
On Monday, Fidelity’s stock closed at $14.06 a share, down 6 cents. Chicago stock rose 75 cents to $40.50, but it is still trading well below the $52-a-share offer from Fidelity.
