Fidelity National Financial Inc. has finally decided to cancel its plan to acquire troubled rival LandAmerica Financial Group Inc.

Florida-based Fidelity announced an agreement on Nov. 7 to acquire LandAmerica in an all stock deal valued at $128 million. As per the agreement, Fidelity had the sole discretion to terminate the offer on or before November 21, 2008.

In a statement Chairman and Chief Executive Theodore L. Chandler Jr. of Va.-based LandAmerica said that the company was disappointed with Fidelity's decision to call off the merger.

However, the company's attention "remains focused on strengthening LandAmerica's business and exploring strategic alternatives during these incredibly difficult economic times", Chandler added.

According to market experts, the decision would cast doubt on LandAmerica's long-term prospects. LandAmerica lost $599.6 million during the third quarter and was in danger of defaulting on its debts, recently company stated in a regulatory filing.

Fidelity National Financial, Inc., through its subsidiaries, provides title insurance, specialty insurance, claims management, and information services in the United States.

The shares of FNF closed Friday's trading session at $7.39 on NYSE. The scrip touched intraday high and low of $7.53 and $7.16 respectively.