VOL. 123 | NO. 222 | Wednesday, November 12, 2008
CB Richard Ellis Intends to Offer 50M Shares
LOS ANGELES (AP) - Commercial real estate services firm CB Richard Ellis Group Inc. said Tuesday it plans to offer 50 million shares of common stock in a public offering.
The news sent company shares plunging $1.27, or 20.9 percent, to $4.82 in morning trading. More outstanding shares would dilute the current stock price.
CB Richard said it plans to use the offering's net proceeds for general corporate purposes. If shares are sold at the closing price of $6.09 on Monday, the offering would be worth $304.5 million.
Underwriters of the deal have the option to buy an additional 7.5 million shares to cover overallotments.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.