MILWAUKEE, Wis., Aug. 21 /PRNewswire-FirstCall/ — MGIC Investment Corporation (NYSE:MTG)
(“MGIC”) announced today that it has filed suit in federal court in Milwaukee, Wisconsin against Radian Group Inc. MGIC is asking the Court to order Radian to provide MGIC with certain information needed by MGIC’s management to complete its analysis of whether MGIC is obligated to close the pending merger with Radian. Management’s analysis has been delayed by Radian’s failure to provide information MGIC has requested.
As previously announced on August 7, 2007, MGIC advised the New York Insurance Department that it was the preliminary assessment of MGIC’s management that MGIC was not obligated to complete the pending merger in light of the impairment, announced on July 30, 2007, of Credit-Based Asset Servicing and Securitization LLC, a joint venture of MGIC and Radian. Radian informed MGIC that it disagreed with MGIC management’s preliminary assessment. The August 7 announcement also said MGIC’s management was reviewing other developments that may affect MGIC’s obligation to close; only MGIC’s Board of Directors could definitively conclude whether MGIC is obligated to close; the Board would not be asked to decide until MGIC’s management had completed its analysis; and MGIC was requesting information from Radian in connection with that analysis. MGIC said it had expected to complete its analysis the week of August 13, 2007, assuming information from Radian was timely received.
Because the requested information has not been timely received from Radian, MGIC has filed an action to enforce the provisions of the Merger Agreement requiring the furnishing of such information.
MGIC is not undertaking any obligation to update the information in this press release. No interested party should rely on the fact that such information is current at any time other than the time at which this press release was issued.