Major Business Deals and Financial Announcements

Strategic Insights -

Chicago's title industry is poised to undergo a significant change as Fidelity National Financial Inc. discusses a potential merger with Chicago Title Corp. The proposed acquisition would result in a real estate giant with $3.2 billion in revenue, with $2.5 billion coming from title operations. Meanwhile, Dominion Resources Inc. and Peoples Energy Corp. have successfully launched their joint natural gas-fired power facility in Illinois, providing peaking capacity to major energy clients. Additionally, Tellabs has completed the acquisition of Alcatel's DSC Communications businesses in Europe, while Duff & Phelps Credit Rating Co. is reviewing the acquisition of Hollywood Marine Inc. by Kirby Corp.

Key Takeaways:

  • Fidelity National Financial Inc. is in talks to acquire Chicago Title Corp. in a deal that would create a real estate giant with $3.2 billion in revenue.
  • The proposed merger would structure the acquisition as a takeover of Chicago Title by Fidelity National.
  • Dominion Resources Inc. and Peoples Energy Corp.'s joint natural gas-fired power facility, Elwood Energy, is now operational and providing peaking capacity to Commonwealth Edison and Engage Energy US, L.P.
  • The facility's four turbines have a combined capacity of 600 megawatts, with 300 megawatts provided to each of the two energy clients.
  • Tellabs has completed the acquisition of Alcatel's DSC Communications businesses in Europe, expanding its presence in the managed services market.
  • The acquisition includes business operations in Drogheda, Ireland, sales and support offices in England, India, and Poland, as well as an interest in FIBCOM India Ltd. in India.
  • Duff & Phelps Credit Rating Co. is reviewing the acquisition of Hollywood Marine Inc. by Kirby Corp., which will be financed through a combination of debt and equity.
  • Kirby will assume Hollywood's existing debt of approximately $100 million.

Statistics:

  • $3.2 billion: the proposed annual revenue of the merged entity created by Fidelity National's potential acquisition of Chicago Title Corp.
  • $2.5 billion: the amount of revenue generated by title operations from the proposed merged entity.
  • $179.1 million: the adjusted proforma revenues of Jones Lang LaSalle for its second quarter ended June 30, 1999.
  • $4.7 million: the adjusted proforma net loss of Jones Lang LaSalle for its second quarter ended June 30, 1999.
  • $0.06 per diluted share: the net income per diluted share of Midland Capital Holdings Corp. for the quarter ended June 30, 1999.
  • $90 million: the amount of common shares issued by Kirby Corp. to finance the acquisition of Hollywood Marine Inc.
  • $100 million: the approximate amount of existing debt assumed by Kirby Corp. in the acquisition of Hollywood Marine Inc.

Sources:

  • Chicago Title Corp.
  • Fidelity National Financial Inc.
  • The Los Angeles Times
  • Dominion Resources Inc.
  • Peoples Energy Corp.
  • Elwood Energy LLC
  • Tellabs
  • Alcatel's DSC Communications
  • Duff & Phelps Credit Rating Co.
  • Kirby Corp.
  • Jones Lang LaSalle
  • Midland Capital Holdings Corp.
  • COMTEX (http://www.comtexnews.com)