Old Republic International Corp. (ORI) said keeping its money-losing mortgage-insurance operation became a better option after stakeholders objected that their interests could have been hurt by a separation, Bloomberg reported Tuesday.
“We ultimately decided that backing off from the spinoff strategy would be, in the long run, a less daunting task from a pure business-management standpoint,” Chief Executive Officer Aldo Zucaro said in a conference call.
Old Republic shares plunged 22% in two trading days following a June 22 announcement that it had halted the spinoff for its Republic Financial Indemnity Group unit after facing resistance.
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