Meridian Delays Sale to Fidelity
READING, Pa. -- Meridian Bancorp. said it has delayed until July 1 the anticipated date of a definitive agreement for the sale of two title insurance subsidiaries to Fidelity National Financial Inc.
The transaction, involving the sale of Meridian Title Insurance Co. and American Title Insurance Co., was announced March 28. A definitive agreement had been expected May 29.
Meridian, an $11.9 billion-asset holding company, said it decided the title business did not fit with its long-term strategy.
The companies said the extension is a result of the complexity of the transaction and the additional time Fidelity needs to familiarize itself with Meridian's title operations.
In their original announcement, the companies said the sale would take place in two stages. In the first, Fidelity National would swap $6.2 million in common stock and $400,000 cash for $6.6 million in convertible subordinated debentures of Meridian Title Insurance. The second stage would be completed in 1992.