Insignia, CB discuss merger.It appears a potential bidding war may be breaking out for control of Insignia Financial Group, the New York-based provider of residential and commercial real estate services. Last week, Insignia disclosed that it had entered merger talks with CBRE CBRE CB Richard Ellis (real-estate firm) CBRE Chemical, Biological, Radiological and Explosive CBRE Component-Based Reliability Estimation CBRE Coldwell Banker Richard Ellis (Boston, MA) Holdings, the parent company of rival CB Richard Ellis CB Richard Ellis Group, Inc. NYSE: CBG is a multinational real estate corporation currently based in Los Angeles, California, U.S.A.. On December 20, 2006, the corporation, also known as CBRE, completed acquisition of Trammell Crow Co. in a transaction valued at $2. , regarding a proposed combination of the two firms. But Insignia appeared decidedly lukewarm over the prospect, cautioning in a statement that considerable obstacles to a deal remained and saying there could be "no assurance that the current discussions will result in a transaction" until the negotiations produced "definitive documentation that resolves all critical aspects of a transaction, including risk allocation and financing." CBRE and Insignia have discussed merging before, but talks have broken down. In Insignia's statement, the firm said the following, "Insignia Financial Group, Inc. acknowledges that the company is in discussions with CB Richard Ellis, Inc. with respect to a proposed combination of the two organizations. There is no assurance that the current discussions will result in a transaction. If and when the parties enter into definitive documentation that resolves all critical aspects of a transaction, including risk allocation and financing, the company will make a public announcement." One industry executive stated, "I would really cement CBRE as clearly dominant in the industry." This week, Insignia issued a new filing disclosing that another suitor SUITOR. One who is a party to a suit or action in court. One who is a party to an action. In its ancient sense, suitor meant one Who was bound to attend the county court, also, one who formed part of the secta. (q.v.) had stepped forward and asked to hold confidential talks about a merger. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the filing, Wall Street investor and former corporate raider corporate raider See raider. Carl Icahn Carl Celian Icahn (born February 16, 1936) is an American billionaire financier, corporate raider, and private equity investor. Carl Icahn Net worth is $14.5 Billion as of 2007 Forbes estimate. has increased his stake in Insignia from the 6.9% he held in early December to about 7.55% this month. Icahn has also signed a confidentiality agreement with the company to obtain "evaluation materials" and enter merger discussions. Reuters reported that Icahn is now Insignia's third-largest investor, behind Capital Group International, which holds a 10.3% stake, and Dimensional Fund Advisors Dimensional Fund Advisors is an investment firm that develops mutual funds grounded in academic research. The company was founded in 1981 by David Booth and Rex Sinquefield, both M.B.A. Inc., which holds an 8.9% stake. Observers remain divided over whether Icahn is interested in gaining control over Insignia or simply in keeping the pressure on CB Richard Ellis to maximize its offer. All three firms declined to comment beyond their public filings. Should Insignia accept an offer from privately held CBRE Holdings, it would result in the combination of the first and seventh largest brokerage firms based on amount of available SF under representation. CBRE, which reportedly has pursued several acquisition targets in the past year, including an unsuccessful bid for Grubb & Ellis last spring, has engaged in discussions with Insignia off and on for months. A possible merger between the two firms offers several interesting possibilities, including the reunification re·u·ni·fy tr.v. re·u·ni·fied, re·u·ni·fy·ing, re·u·ni·fies To cause (a group, party, state, or sect) to become unified again after being divided. of the Richard Ellis There are several prominent people named Richard Ellis, including
In New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , a merger would also reunite super broker Mary Ann Tighe with her former colleagues at Insignia/ESG CB Richard Ellis made headlines last year after luring Tighe away from Insignia to head its New York Tri-State region. CB Richard Ellis said it has just under 10,000 employees and maintains 250 offices in 47 countries. After a brief stint as a publicly traded entity, the firm was taken private in July 2001 in an $800 million leveraged-buyout led by Blum Capital Partners. Insignia Financial said it has about 6,500 employees in 100 offices worldwide. In addition to its U.K.-based Insignia Richard Ellis, the firm owns Paris-based Insignia Bourdais with operations throughout France, and Insignia Brooke, Insignia's Asian operations, launched with the acquisition of Brooke International in December 2000. Insignia also owns Insignia Douglas Elliman - the largest residential brokerage firm in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and Insignia Residential Group, a manager of cooperative and condominium apartments in the New York metropolitan area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. . Insignia Financial shares soared more than 16% to $9.72 per share Friday after news of the offer was made public. |
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