Domain suitor CoStar facing new pressure from US hedge fund activists
CoStar’s $2.8 billion bid for Domain is not expected to be impacted by a review of major investments by the US property giant.
CoStar, the US property giant poised to acquire Nine Entertainment’s digital real estate portal Domain, has reshuffled its board and agreed to review its capital structure following pressure from investors.
The $51 billion Nasdaq-listed firm will form a capital allocation committee led by CoStar’s founder and CEO Andy Florance as part of an agreement with Third Point, the hedge fund founded by prominent Wall Street agitator Daniel Loeb, and D.E. Shaw.
The committee will review the company’s capital structure and allocation priorities, “including for international expansion”, as part of a bid to improve performance, according to documents filed with the Securities and Exchange Commission this week.
However, the review is not expected to impact CoStar’s $2.8 billion pursuit of Domain, according to two people briefed on the situation, speaking on condition of anonymity to discuss confidential information. CoStar declined to comment.
