First American Financial Plans 2-for-1 Stock Split

Santa Ana-based First American Financial Corp., the holding company for First American Title Insurance Co., said it plans a two-for-one stock split to make its stock more attractive to potential investors.

The company said First American shareholders of record of May 22 will receive an extra share for every share they already own. The additional shares will be distributed on June 5, when the current shares outstanding double to 5.5 million from 2.77 million.

Jack Derloshon, First America’s chief financial officer, said early this year the trading value of the company’s share rose dramatically and beyond the reach of many individual investors. The stock split, he said, will slash the share price to about $30 from about $60.

First American’s board of directors also approved an amendment to the company’s certificate of incorporation which will increase the total amount of common stock the company is authorized to issue to 12 million shares from 6 million.