CoreLogic has turned down CoStar’s latest acquisition offer, even after the commercial data giant sweetened the deal with an additional $450 million in cash

In an open letter to CoStar’s CEO, Andrew Florance, CoreLogic said it believed in “the strategic potential in the combination of our two businesses” and that it would make a counter-offer. 

On February 16, CoStar made an all-stock offer of 0.1019 shares of CoStar stock in exchange for each CoreLogic share, a deal valued at the time at $6.9 billion. CoStar upped the offer on March 1 with an additional $6 cash per share.

However, the added cash did not make up for CoStar’s share value loss in the wake of the mid-February bid.

CoStar’s shares have declined further and are now down almost 20% since that bid was announced, CoreLogic noted.

“$6 per share in cash does not meaningfully reduce CoreLogic shareholders’ exposure to the concerning volatility of your stock,” CoreLogic wrote. “Any new proposal should deliver increased more certain value and as much cash consideration as possible.”

CoreLogic was also unsatisfied with CoStar’s assurance that the deal would clear antitrust hurdles. Although Florance has argued the two companies operate in different markets — CoStar in commercial property data, CoreLogic in residential — CoStar’s proposal would give it leeway to extend the deal closing date by as much as 15 months in case legal troubles arise.

“The terms of your Updated Proposal and your rationale for the extended Termination Date are inconsistent with your public statements that there is no meaningful antitrust risk,” CoreLogic wrote.

Meanwhile, CoreLogic’s merger agreement with investment firms Stone Point Capital and Insight Partners, which have offered $6 billion in cash, remains in force. That deal would close in six months.

The AIM Group has reached out to CoStar for comment.

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