market folly

Keith Meister's activist hedge fund Corvex Management filed a 13D with the SEC regarding shares of Fidelity National Financial (FNF).  They've disclosed a 7% ownership stake in the company with 17,435,547 shares.  This is a brand new position for them.

Their stake includes an aggregate of 14,601,900 shares underlying call options, so that's worth noting. Over 8.1 million of these shares are represented by calls with a $15 strike and August 29, 2014 expiration.  Over 6.4 million shares are via October 31, 2014 calls with a $16 strike.  Shares of FNF currently trade around $28.

Meister's activist filing says that they are "supportive of the Issuer's announced acquisition of Lender Processing Services" and they have had and may continue to have discussions with management.  The filing was made due to activity on October 21st.

Per Google Finance, Fidelity National Financial is "a holding company. FNF, through its subsidiaries, provides title insurance, mortgage services and diversified services. FNF operates in four segments: Fidelity National Title Group, Remy, Restaurant Group and Corporate and Other. The Fidelity National Title Group segment consists of the operations of FNF’s title insurance underwriters and related businesses. The Remy segment is a designer, manufacturer, remanufacturer, marketer and distributor of aftermarket and original equipment electrical components for automobiles, light trucks, heavy-duty trucks and other vehicles. The Restaurant Group segment consists of the operations of ABRH. The corporate and other segment consists of the operations of the holding company."

We've covered Corvex's past portfolio activity here.