LandAmerica, Fidelity National shares jump

Fidelity National Financial Inc. will acquire LandAmerica in an all-stock deal that was valued at about $128.4 million based on Thursday's closing price for Fidelity National Financial stock. LandAmerica shareholders will receive 0.993 shares of Fidelity National Financial for every LandAmerica share they own.

The deal valued LandAmerica shares at $8.29 each based on Fidelity National's Thursday closing share price of $8.35. LandAmerica shares closed Thursday at $4.75.

LandAmerica shares soared $3.95, or 83.1 percent, to $8.70 in early afternoon trading. Fidelity National shares climbed $1.97, or 23.6 percent, to $10.32.

The proposed combination would create a company that controls nearly half the title insurance market. Based on 2007 figures, the pair captured about 46.3 percent of the market.

Title insurers have been hit hard though since 2007 amid the sharp decline in the housing market as sales and prices have tumbled.