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Fitch Puts LandAmerica on Ratings Watch.(LandAmerica Financial Group)(Brief article)

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| May 01, 2006 | COPYRIGHT 2006 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Richmond, VA -- LandAmerica Financial Group here has been placed on Rating Watch Negative by Fitch Ratings, Chicago, because of its agreement to acquire Capital Title Group Inc., Scottsdale, Ariz.

The placement, Fitch said, is because of its ongoing concerns regarding LandAmerica's ability "to profitably execute its acquisition strategy."

It said it is worried about the size of the purchase price premium relative to reported book value, especially because the deal is being done "at the peak of the real estate cycle."

Another concern is that the purchase will further weaken LandAmerica's balance sheet. The transaction, valued at $251 million, will be paid out ...

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Source: HighBeam Research, Fitch Puts LandAmerica on Ratings Watch.(LandAmerica Financial...

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