No Bidding War Seen for CB Richard Ellis, Insignia

LOS ANGELES-Analysts say there’s little chance that an all-out bidding war is about to begin for either CB Richard Ellis or Insignia ESG (if rumors about a possible merger with Vornado are true), as other would-be suitors fret about the prospects of a slowdown in the nation’s commercial real estate markets and the impact that technology itself will have on the future earnings of services firms.

LA-based CB Richard Ellis said Monday that a management-led investment group has offered $15.50 a share for the 62% of CB stock that it doesn’t already own, giving the deal a total price tag of about $740 million. Separately, New York-based Insignia ESG was said to be in talks to be acquired by Vornado Realty Trust. Some sources have said, however, that there is no basis to the rumor.

The value of CB and Insignia shares jumped in trading on the New York Stock Exchange. CB’s stock shot up $2 a share to $15.13, a gain of nearly 16%. Insignia Financial Group, the parent of Insignia ESG, saw its stock rise $1.25 to $11.63, a gain of more than 12%.