COSTA MESA — The yearlong hostile bid to take over US Facilities Corp. has turned friendly--an indication that all or part of the insurance carrier could be sold soon to onetime nemesis Fidelity National Financial Inc.
"We have recently had positive discussions between our two companies," said William P. Foley II, Fidelity's chairman.
Officials from US Facilities in Costa Mesa, which specializes in medical, property and casualty insurance, would not comment.
As recently as May 8, Fidelity President Frank P. Willey said the Irvine title insurer would continue to pursue its hostile $73-million takeover bid.
Willey had said that Fidelity, the nation's fifth-largest title insurer, would propose its own slate of director nominees at the US Facilities annual meeting, which was held Wednesday. But, in an apparent show of improved relations between the two companies, no alternative slate was nominated.
Shareholders elected Charles L. Schultz, 67, former chief financial officer of Farmers Group Inc., as a new member of the company's board of directors. They also reelected as directors David L. Cargile, 49, the company's president and chief executive, and Howard S. Singer, 49, its executive vice president. All will serve three-year terms.