Property advisor Savills suffered a drop on the London Stock exchange on Thursday when it emerged rival CB Richard Ellis had sold the 19% stake in Savills at 623 pence per share. CBRE obtained the stake, owned by Trammel Crow Company, when it bought Trammel last year for $2.2 bn.
Property advisor Savills suffered a drop on the London Stock exchange on Thursday when it emerged rival CB Richard Ellis had sold the 19% stake in Savills at 623 pence per share. CBRE obtained the stake, owned by Trammel Crow Company, when it bought Trammel last year for $2.2 bn.
As late as Wednesday Savills indicated it intended to buy back the stake. But the next day CBRE confirmed it had sold the shares by way of a book-building offering managed by Credit Suisse Securities, Morgan Stanley Securities and ABN Amro unit Hoare Govett. The net pre-tax proceeds will be around $311 mln and completion of the transaction is expected on January 17. CBRE said the proceeds will be used to reduce debt incurred in the Trammell takeover.
Savill's stock fell as much as 5.3% on Thursday, and was down 17 pence, or 2.6%, at 630 pence at 9:20 a.m. in London. This was the biggest decline since October 17 when the shares lost 2.8%, Bloomberg reported.