LandAmerica Financial Group Inc., one of Virginia’s Fortune 1,000 companies, soon will be much smaller.
The Henrico County-based real estate services company is selling 90 percent of its business to companies owned by Fidelity National Financial of
Jacksonville, Fla., one of LandAmerica’s biggest rivals in the title insurance industry. The $282 million deal includes three LandAmerica’s companies —
Commonwealth Land Title Insurance Co., Lawyers Title Insurance Corp. and United Capital Title Insurance Co.
The transaction actually is Fidelity National’s second attempt to acquire LandAmerica’s title business. It had proposed a merger with LandAmerica in early
November. But two weeks later Fidelity called off the deal after examining LandAmerica’s books.
The latest deal, announced Nov. 26, does not include the LandAmerica parent company and a subsidiary, LandAmerica 1031 Exchanges Services Inc., which has
ceased operations. In announcing the sale of its title insurance companies, Land-America also filed for protection from creditors under Chapter 11
bankruptcy.
LandAmerica, the third largest title insurer in the country, has been hard hit by the declining real estate market and the collapse of a little-known market
in auction-rate securities. LandAmerica 1031 Exchanges Services had used the market to hold money for real estate customers who typically were exchanging one
piece of property for another. The number 1031 refers to the section of the Internal Revenue Code allowing capital gains to be deferred in this type of
transaction.
LandAmerica canceled all life and health insurance benefits for about 2,000 retirees. A spokeswoman said LandAmerica didn’t have the money to continue the
coverage.
LandAmerica follows Circuit City Stores Inc as the second major Richmond-area company to file for Chapter 11 in recent months.
i have over 10,000 shares of lfgrq and i wonder what it’s stock is going to do
--danny pollock of efland nc
Jan. 2, 2009 at 02:30 PM
Go to $3.00+
--jeff blake
Jan. 5, 2009 at 10:08 PM
In all expectations after reviewing the company balance sheet ending 3rd Qtr 2008. And keeping in mind what has actually transpired in financial dealings with LFGRQ,one could easily see that with an O/S a little over 15 Million shares that after the CH11, discharge this stock could easily find its way back into the $40.00+ pps.
--David M Benson of Charleston S.C
Jan. 30, 2009 at 09:32 AM
What about the retiree’s who were promised health and dental insurance for life as part of their retirment packages . Some are in their 90’s now . These promises go back to the 60’s . They sold off the companies like Lawyers Title and not the normal obligations ? The fuduciaries of the plan should be personally held accountable with LandAmerica for the pension plan health benifits . I wonder who will help these people like my 90 year old Mother who is sick in a home . Many wont be able to help themselves . Do they have to prove on a employee by emoloyee basis with original contracts they are not obligated ? Any other old retiree’s out there from the title companies ? What do you think ? Peoples words mean nothing anymore . Retirement benifits means if we feel like it or can afford it? Why weren’t these benifits kept safe ? Can there be a happy ending to this . God Bless .
--Croppled1 of Michigan
Mar. 19, 2009 at 11:23 PM