MGIC Investment and Radian Group Terminate $4.9B Merger

Mortgage insurers MGIC Investment Corporation and Radian Group Inc. jointly announced early Wednesday that they have agreed to terminate their pending $4.9 billion merger. MGIC had agreed to acquire Radian in February in a stock swap. As of Tuesday's market close, MGIC and Radian shares have fallen 57% and 73%, respectively, since peaking in February on the merger announcement. The companies cited "current market conditions," which "have made combining the companies significantly more challenging." They agreed to withdraw all outstanding litigation and their joint press release said neither party made a termination payment. Shares of MGIC gained 0.6% to $30.34 on Tuesday. Radian shares rose 2.7% to $18.11. MGIC is untraded so far in Wednesday's pre-market, while Radian is down 7.8% to $16.70 on thin volume.

Sources: Press release, MarketWatch
Commentary: MGIC Investment Sues Radian Group For Necessary Merger Information • MGIC Investment, Radian Shares Plunge On Likely $1 Billion Write Down • MGIC Investment Corp. to Buy Radian for $4.9 Billion in Stock
Stocks/ETFs to watch: MTG, RDN. Competitors: PMI, GNW, AGO, TGIC

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