FNF, Matrix Call Off Merger

Fidelity National Financial, Irvine, Calif., and Denver-based Matrix Capital Corp. have called off their merger agreement.In a joint statement, the parties said they found the requirements for regulatory approval of the deal (including the approval of FNF as a unitary thrift holding company) were burdensome and raised serious questions as to the feasibility of the merger. Ironically, in making the agreement to merge with FNF, Matrix Capital was forced to terminate an agreement to acquire The Leader Mortgage Co. FNF and Matrix have entered into an agreement under which FNF will keep at least $250 million on deposit at Matrix Capital Bank. Matrix has also agreed to issue warrants to FNF to purchase 150,000 shares of Matrix common stock at 115% of the average closing bid and ask prices on Aug. 27, 1998. Matrix said it plans to use the deposits to invest in single-family mortgages and servicing rights.