FTC Approves Fidelity-Chicago Title Merger

The Federal Trade Commission has approved the proposed merger of Irvine-based Fidelity National Financial Inc. and Chicago Title Corp., a $1.2-billion deal that would create the nation’s largest title insurance company. The companies will be required to divest title plants in five Northern California counties. One of the companies also will have to relinquish voting rights or an interest in a joint title plant in another county. The deal--expected to close in the first quarter--is subject to shareholder approval next month. Also, the recent decline in Fidelity’s stock price could force the companies to renegotiate Fidelity’s $52-a-share offer for Chicago, changing the ratio of cash and stock in the transaction. Terms could be renegotiated if Fidelity’s stock price remains below $15 a share. In NYSE trading, Fidelity’s stock fell 56 cents to close at $13.25, a 52-week low; and Chicago Title closed at $46.44, up 56 cents a share.