First American Spin-Off Clears Government Approval
May 25, 2010
The First American Corp. announced the satisfaction of the governmental conditions to the spin-off of its Financial Services businesses, which includes its core title insurance business. Those governmental conditions included the receipt of a private letter ruling from the Internal Revenue Service substantially to the effect that the distribution will qualify as a tax-free transaction for U.S. federal income tax purposes, the approval of the California Department of Insurance and the approval of the Office of Thrift Supervision.
Based on the satisfaction of these governmental conditions, which were the primary outstanding conditions to the distribution, the company is affirming the previously announced May 26, record date and June 1 distribution date.
On May 24, First American Financial Corp. commenced trading on a “when-issued” basis on the New York Stock Exchange under the ticker symbol “FAF-WI.” In addition on May 24, the company’s shares were expected to trade on an ex-distribution basis, representing a market for the remaining Information Solutions company, under the ticker symbol “CLGX-WI.” These markets will be in addition to the market for the combined company’s common shares, which will continue to trade on the New York Stock Exchange up through and including the June 1 distribution date under the ticker symbol “FAF.”