First American to Buy Credit Management

First American Corp. said it would buy Credit Management Solutions Inc. for about $52 million in a stock-for-stock deal, broadening its centralized national database that streamlines title searches. The move, approved by the boards of both companies, is expected to close in the second quarter of 2001, said First American, a Santa Ana-based title company that offers real-estate-related financial and informational services. Shareholders of Credit Management, based in Annapolis Junction, Md., would receive no more than 0.2841 and no less than 0.2083 of a First American common share for each share of Credit Management common stock, said First American. This represents a premium of up to 2 1/2 times Credit Management’s closing price on Monday. On Tuesday, Credit Management’s shares rose $2.69 to close at $6.44 on Nasdaq, and First American’s shares dipped $1.21 to close at $30.79 on the New York Stock Exchange.