Fidelity Chairman Quits Hammond Board

NEWPORT BEACH —  The chairman of Fidelity National Financial Inc. resigned Tuesday from the board of the Hammond Co. in an attempt to ease tensions that have sprung from Fidelity’s interest in a possible buyout.

William P. Foley II, chairman of the Irvine title insurance company, resigned mainly because Fidelity was making no headway in its limited talks with Thomas T. Hammond, chairman and president of the mortgage banking firm, according to Frank P. Willey, Fidelity’s executive vice president and general counsel.

Foley had earned a seat on Hammond’s board in July after Fidelity bought 16.3% of the firm. Fidelity has since acquired a 23.6% stake in Hammond and said in a filing with the Securities and Exchange Commission in late September that it would be interested in acquiring Hammond on a friendly basis.

On Nov. 8, Fidelity agreed not to purchase any more shares of Hammond for six months. In return, Hammond was to provide business and financial information to Fidelity so that it could decide whether to make a formal offer for Hammond.

Willey said the two firms had “very preliminary” talks during the summer about doing business together by steering customers to each other and had talked a little more in recent months about a possible purchase price for the rest of the Hammond Co.

“Based on what they would like to receive for the stock on a friendly basis, the price is more than we’re willing to pay,” Willey said. No offer ever was made during the limited talks, he said.

“We’re comfortable with where we are now,” Willey said. “It’s not our intent to aggravate Tom or give him any concern over operations of Hammond Co. We’ll weigh the alternatives at the end of six months and decide what to do then.”