Palm Beach, FL 5/21/12 (StreetBeat) -- Radian Group Inc (NYSE: RDN) shareholder Clinton Group pushed the mortgage insurer to disclose more information about its business to potential suitors, saying it was aware of at least one former industry executive keen on acquiring the company.
In a letter to the company, asset manager Clinton said the potential suitor had expressed serious interest in acquiring Radian at a price significantly above its current trading level.
Radian shares, which traded at more than $60 before the housing meltdown in 2007, opened up 6 percent at $2.15 on the New York Stock Exchange on Monday.
Clinton asked Radian to give shareholders sufficient data about its legacy mortgage insurance and other business for estimating potential liabilities of the company.
Clinton Group has a 1.4 percent stake in the company, according to Thomson Reuters data.
Radian and its rivals MGIC Investment Corp (NYSE: MTG) and Genworth Inc (NYSE: GNW) insure home loans when the down payments are less than a fifth of the property's price.
These insurers underwrote millions of mortgages at low premiums in the heady days of the housing boom. But the wave of foreclosures, unleashed by the crisis that followed, hit their capital levels and raised their risk ratios.
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