Grubb & Ellis For Sale?
Grubb & Ellis says it’s had “unsolicited inquiries” and is using JMP Securities to “explore strategic alternatives," maybe including a sale or merger. Its stock price remains unchanged at 98 cents. ChairmanC. Michael Kojaian says while the company has made progress restructuring, it can better leverage its platform into an improving market. |
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Yesterday we spoke to former Grubb chairman Tony Thompson(now CEO of Thompson National Properties). In late 2006, he orchestrated the acquisition of Grubb in a reverse merger by his NNN Realty Advisors. He tells us recent events aren’t surprising. Tony (who says he doesn’t own shares anymore) blames the board, which he says “never gave management any authority to do anything.” He also notes that a year and a half ago Grubb sold $90M in convertible preferred stock and has skipped paying the dividend. “Obviously, the real estate market is tough, but other companies like CB Richard Ellis and Jones Lang LaSalle are doing fine.” |
