MGIC Investment Corp. (NYSE:MTG) has announced that the company has filed suit in Milwaukee Federal Court requesting the following:
[T]o order Radian to provide MGIC with certain information needed by MGIC's management to complete its analysis of whether MGIC is obligated to close the pending merger with Radian.
In response, Radian Group (NYSE:RDN) claims it has issued the following statement:
(RDN) continued to provide MGIC with responsive information. Radian never consented to the timeline stated in MGIC's August 7, 2007 press release, and is compelled to carefully assess the proprietary nature of the subsequent information requests to ensure that Radian does not provide MGIC with an unfair competitive advantage in the event that MGIC decides that it does not have an obligation to complete the merger.
Obviously, MTG is now taking the steps to terminate this merger, but seems to be leaving the door open for moving forward with the deal should its legal standing be aggressively challenged by RDN. There now appears to be genuine animosity developing between the two entities, which is not surprising given the escalating concerns over the companies' C-BASS joint venture.
At this point, there is little expectation that the companies' will reconciliate, despite the strong perception that the strategic rationale for the merger has changed very little.
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