April 23, 2010 / 1:35 AM / in 7 years

UPDATE 1-First American to pay $313.8 mln for JV stake

2 Min Read

* 20 pct stake to be purchased from Experian

* Split-off of information solutions business planned

* First American shares close up 54 cents

NEW YORK, April 22 (Reuters) - First American Corp (FAF.N), one of the largest U.S. title insurers, on Thursday said it will pay $313.8 million to buy Experian Plc's (EXPN.L) 20 percent stake in a real estate joint venture.

First American said it will acquire a stake by exercising a previously agreed-upon option to make the purchase.

It said its decision substantially eliminates Experian's veto rights under the agreement for the joint venture, First American Real Estate Solutions LLC.

Parker Kennedy, First American's chief executive, in a statement said the exercise will boost the financial and operational flexibility of the company's information solutions business, which it plans to split off into a separate public company on June 1, 2010.

First American in based in Santa Ana, California.

The company's shares closed Thursday up 54 cents at $36.78 on the New York Stock Exchange.

Reporting by Jonathan Stempel; Editing by Phil Berlowitz;

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