Clinton Group Inc., an investment manager which says it is one of the largest shareholders in Radian Group Inc., is calling on the Philadelphia-based private mortgage insurer to put itself up for sale.
A letter signed by George Hall, CEO of Clinton Group, to Radian's board, states, "We believe there are many firms eager to engage in such a dialogue with Radian, and are aware of at least one accomplished industry executive that has expressed a strong desire to acquire the company even at a price significantly above its current trading level."
Radian said its policy is "not to respond to rumors about the company, including the purported expressions of interest referenced in the Clinton letter."
The statement said it has held "detailed discussions" with the Clinton Group Inc. to review ideas to enhance disclosure and that it "values the opinions of its stockholders."
Radian also said that information about its financial position and legacy books of business, including historical data for the past 10 years on its private mortgage insurance business, are available on its website.
At 4 p.m., Radian was trading at $2.38 per share, up nearly 18% on the day and a penny short of today's high point.
The Clinton Group letter starts out calling for Radian to make available detailed information on each of the mortgages and financial instruments to which it has exposure.
"This level of transparency will help investors correctly value the business. Let investors have the underlying information so that they can perform their own math and reach their own conclusions, rather than allowing unending speculation and unfounded concerns drive the stock out of the hands of your fundamental long-term investors."
