While neither Vornado nor Insignia executives could be reached,GlobeSt.com has been told that the rumor has no basis in fact. Butif the talk is true, the play would be an ironic twist in thegrowth pattern for locally based Insignia, which a few years backmade headlines almost monthly for its aggressive acquisitionstrategy that included such names as Douglas Elliman; Lynch MurphyWalsh & Partners; and Frain Camins & Swartchild.

Insignia Financial Group, the parent of Insignia ESG, saw itsstock rise $1.25 to $11.63, a gain of more than 12%.

Backing up the report that the rumor is untrue, the story comesat a strange time in the economic cycle, and analysts seem wary toembrace fully such a deal, despite the fact of strong numbers inboth stock and real estate performance. While the numbers add up,the threat of a downturn looms large in their perception.