"We are disappointed with Fidelity's decision; however, our attention remains focused on strengthening LandAmerica's business and exploring strategic alternatives during these incredibly difficult economic times," Chief Executive Theodore Chandler said.

Fidelity National, one of the largest U.S. title insurers, agreed to buy LandAmerica for about $126 million in stock in early November.

Shares of Glen Allen, Virginia-based LandAmerica were down $3.80 at 54 cents, while those of Jacksonville, Florida-based Fidelity were up 53 cents at $7.92 Monday on the New York Stock Exchange.

(Reporting by Anurag Kotoky in Bangalore; Editing by Anil D'Silva)