Mortgage insurer Radian Group Inc. was in takeover talks with an investor group earlier this month including Apollo Global Management and Centerbridge Partners, before discussions stalled over the terms of a potential deal, according to people familiar with the matter.
Canada Pension Plan Investment Board, which owns 2.4% of Radian, according to data compiled by Bloomberg, was also part of the group, said the people, who asked not to be identified as the details are private. It's unclear whether the talks could be revived, the people said.
Representatives for Apollo, Canada Pension and Radian declined to comment. Centerbridge didn't respond to requests for comment.
Radian closed at $21.03 per share on Feb. 15, a gain of $1.46 on the day, after reaching a high of $21.39. Its shares had fallen about 9% over the past 12 months before rising on the news of the sale discussions.
The talks come amid a pickup in financial services dealmaking in the U.S., as private equity buyers prowl for undervalued banks, insurers and other industry players looking for scale and diversity. Last week,
Radian helps home lenders mitigate losses by selling insurance that covers home buyers who take out mortgages with down payments of less than 20%, according to its website. Its mortgage and real estate services arm helps financial services firms and governments evaluate and securitize loans and asset-backed securities.
