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