LandAmerica Financial Group
(NYSE:LFG) shares moved up last Friday and held their gains today after
Viking Global disclosed a 7.9% stake in the company and expressed their
belief that the company should be sold. LFG has been a solid performer
during the past year, moving up over 70% since the end of 2006. The
gains can be attributed to several new programs and initiatives
designed to boost earnings during a tough market.
Viking Global
said that while it is pleased with management's initiatives to improve
the company, a large scale acquisition of the company could add $7 to
$8 per share via synergies. This would double the company's earnings
per share and create a substantial buyout premium. The activist hedge
fund suggested that the probability of a deal would be high and that
the board should carefully evaluate whether shareholder interests would
best be served through a buyout or by remaining independent. Either
way, this is definitely a stock to
keep on the radar.
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