Fidelity National acquiring LandAmerica

Title insurers have been hit hard amid the sharp slowdown in the housing market since the middle of 2007.

The proposed combination would create a company that could control nearly half the title insurance market. The companies involved in the deal captured 46.3 percent of the title insurance market during 2007.

Shareholders of LandAmerica will receive 0.993 shares of Fidelity National Financial common stock for every share of LandAmerica they hold. Based on Fidelity National Financial's Thursday closing price of $8.35 and the number of LandAmerica shares outstanding as of July 25, the deal is worth about $128.4 million.

Fidelity National Financial has a due diligence contingency period to further review LandAmerica's operations and financial condition. The period expires Nov. 21.

As part of the deal, Fidelity National Financial's title insurance subsidiaries will provide liquidity to LandAmerica to help LandAmerica repay outstanding debt under its revolving credit facility and senior notes.

The companies expect to realize at least $150 million in cost synergies once operations are combined.

LandAmerica's chairman and chief executive, Theodore Chandler Jr. will join Fidelity National Financial's board of directors as a vice chairman after the deal is closed.

No final closing date for the acquisition was disclosed.