C&W in talks with suitors.

Real estate giant, Cushman & Wakefield, has been in talks with Italian investment trust, IFIL, over a possible buy-out from parent company, Mitsubishi Estate Co.

On Tuesday, the firm issued a statement confirming talks had taken place with the holding company owned by Italy's famous Agnellis family after the New York Post broke the news that a $900 million sale could be in the works. However, Cushman & Wakefield's spokesman said a deal was far from certain and refused to comment on "rumor or speculation" about its future. "In recent months, we have evaluated opportunities with a number of firms, including IFIL, but no agreements have been formalized or arrived at," said the spokesman, who added that the talks were nothing new at the world's largest privately held real estate firm where regular discussions take place with what he called "potential business partners."

Indeed, the news of a possible sale caused little surprise among executives in the city who said it would be a smart move on C&W's part.

"The industry is clearly going through what many other industries have gone through in recent years, which is consolidation," said Richard Bernstein, New York area president of Trammel Crow Company, which only last month was bought for $1.8 billion by CB Richard Ellis. "It's a good move on Cushman's part to infuse the company with a new partner and, presumably, new working capital, making itself as nimble and strong as possible," said Bernstein.

It's been no secret that brokerage-focused Cushman has been actively examining ways to diversify its revenue. Last year, president and CEO Bruce Mosler, told REW that a 50/50 split in revenue was key to the company's future.

However, sources say, Mitsubishi has also been looking for an exit strategy and buyout powerhouse, Blackstone, has been among a handful of other firms rumored to have been circling over Cushman & Wakefield.

"I think the Italians are the most friendly [buyers]," said one source, who predicted a company such as Blackstone might be predisposed to dismantle much of the company's current operating structure. While rivals such as CBRE and Jones Lang LaSalle are reaping the rewards of a diversified real estate services firm operating as a public company, with the majority of its business coming from brokerage--the least profitable segment of the business--Cushman & Wakefield has been unable to consider going public. However, as one of the most recognizable brand names in the world, the firm's name could be leveraged by any buyer to realize extra value. "Anyone that has looked at them will probably factor in some premium for the brand," said a source. "And new ownership would also allow them to get into other lines of business."

If it goes ahead, the deal would be the latest in a string of mergers and acquisitions predicted by Mosler himself in October last year when he told REW that real estate's "big three of four" would soon become "two or three."

As well as the buyout of TCC by CBRE last month, the Blackstone Group just paid $19 billion for Equity Office Properties and, in partnership with Brookfield, paid $8.9 billion to buy Trizec.