MGIC files suit seeking requested information from Radian

By Lisa Kerner

Charlotte, N.C., Aug. 21 - MGIC Investment Corp. filed suit in a Milwaukee federal court to force Radian Group Inc. to provide the company with information it has requested related to the companies' pending merger and MGIC's analysis of the deal.

As previously reported, MGIC notified the New York Insurance Department that it does not believe it is obligated to complete the pending merger with Radian, citing the impairment announced by joint venture Credit-Based Asset Servicing and Securitization LLC. Radian disagreed.

Under their Feb. 6, 2007 agreement, MGIC and Radian planned to merge, forming a new mortgage and credit risk insurance company called MGIC Radian Financial Group Inc. Shareholders of both companies have approved the transaction.

The agreement called for each share of Radian common stock to be exchanged for 0.9658 of a share of MGIC common stock based on Feb. 5 closing prices. MGIC (NYSE: MTG) closed at $62.93 on Feb. 5; Radian (NYSE: RDN) closed at $60.84 on Feb. 5.

MGIC is a holding company and a private mortgage insurance provider based in Milwaukee.

Radian is a credit risk management company based in Philadelphia.

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