Shares in troubled US agent CB Richard Ellis have perked up, following news that the husband of a US senator has bought a 7.8% stake in the company.
San Francisco-based Blum Capital Partners picked up 1.3m shares in CBRE, which owns Hillier Parker in the UK, according to documents filed with the Securities and Exchange Commission last week.
Blum, controlled by investor Richard C. Blum, the husband of California Democratic Senator Dianne Feinstein, bought for just under $11 a share on 8 November, a few days after CBRE issued its second profits warning this year. CBRE said 1999 profits could be at least 15% lower than forecast.
CBRE’s share price jumped from $10.5 to $14.5 following the revaluation of Blum’s interest and has since settled back to $13.
Blum’s stake comes amid persistent market speculation of an imminent merger between CBRE and rival Insignia. Both companies deny the rumours.
EGi News 25/11/99
