Fidelity National Financial Seeking Strategic Alternatives for Its Investments

Fidelity National Financial’s stock price increased by 2.7% on Tuesday after the company said it has hired JPMorgan as an advisor to vet alternatives for its portfolio company investments.

The title underwriter owns controlling stakes in American Blue Ribbon Holdings LLC, which owns restaurants, and Remy International, a manufacturer of aftermarket and original equipment electrical components for automobiles.

The alternatives include creating a tracking stock, spinning FNF’s shares in these businesses or selling them.

FNF is concentrating on its proposed acquisition of Lender Processing Services, says William Foley, chairman. Furthermore, these investments are not being reflected in FNF’s stock price and so it is looking at the alternatives to unlock the value.

LPS, which is not part of the MIEC, was up 1.1%.

FNF was the largest gainer among the six Mortgage Industry Equity Composite stocks that closed higher than they did on Monday.

Of the 11 stocks that closed lower, the largest percentage loss was seen by Ellie Mae, down 2.22%, followed by OceanFirst Financial, down 2.16%, and Radian Group, down 1.53%.

Separately, a subsidiary of Genworth Financial has completed a $400 million offering of senior notes due 2024, according to an 8-K filing obtained through DisclosureNet.com.

The proceeds will be contributed to the company’s U.S. mortgage insurance business to help it meet higher capital requirements expected to be imposed by the government-sponsored enterprises.

Meanwhile, Arch Capital Group has filed a prospectus with the Securities and Exchange Commission for a senior note offering whose proceeds will be used to finance the acquisition of CMG MI from PMI and CUNA Mutual.

No amounts were listed in the filing, which was also obtained via DisclosureNet.com.

The prospectus did state that pending approvals from the GSEs, the deal could close as early as this month or in the early part of 2014.