Fidelity National Plans More FinancialRe-Engineering
JACKSONVILLE, Fla. - (07/28/05) -- Financial services conglomerateFidelity National Financial Inc. will try again to reinvent itselfthrough financial engineering, with a planned spin off of its coretitle insurance business over the coming weeks. The company, whichdiversified through the acquisition of half a dozen financialoutsourcing companies, abandoned a plan to spin off its financialservices subsidiary last year in favor of a $2.5 billionrecapitalization and partial sale of the unit. That unit includessuch credit union outsourcing operations as Aurum Technology,ALLTEL Information Services, VISTA Information Solutions, andSanchez Computer Associates and InterCept. Separately, FidelityNational reported second earnings declined 14% to $190 million, or$1.07 a share, compared to the same period last year. Secondquarter revenues climbed 11% to $2.4 billion, much of it do to theintegration of several acquisitions. For the first six months ofthe year Fidelity National reported a 70% surge in earnings to$634.5, or $3.58 a share, based partially on a 16% rise in revenuesto $4.7 billion. Also, Bill Foley, CEO of Fidelity National whopaid himself more than $80 million as part of the company's$10-a-share special dividend last year, made a $15 million donationto the U.S. Naval Academy, the largest donation ever given to hisalma mater.