Fidelity Plans Spin-Off of Former Alltel, Other Information Units.(restructuring of Alltel Corp.)

The nation's largest service bureau for automating loan administration data appears to be headed for its second ownership change in as many years.

Title insurance giant Fidelity National Financial, which less than two years ago bought the unit from Alltel, now plans to spin-off that unit and the rest of its information services business into a new, publicly traded company.

The new company will be named Fidelity National Information Services, or FIS. The initial public offering is expected to raise up to $500 million, though FNF will initially retain a large ownership stake in FIS. But FNF plans to spin-off its ownership stake through a special dividend to shareholders next year.

The special dividend is expected to occur by the middle of next year, FNF chairman and CEO William Foley said during a conference call last week. FNF acquired Alltel's financial services business for just under $1.1 billion in early 2003.

FIS will consist of three segments: Financial Institutions Software and Services, Lender Outsourcing Solutions and Information Products and Services. FISS, which will include the mortgage processing and outsourcing business, will be the largest of those three units. The LOS unit will include loan facilitation and default-management services.

Completion of the spin-off of FIS is contingent upon several factors, including a favorable tax ruling from the IRS, the company said.

Mr. Foley will become chairman and CEO of FIS following the public offering. Thereafter, he will remain chairman of FNF, but Randy Quirk will assume the role of CEO at FNF.