X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-The $740-million battle for control of locally based real estate services giant CB Richard Ellis has overshadowed another effort to take over one of the area’s other publicly held real estate companies–little-known and lightly traded G&L Realty Corp.

G&L, based in Beverly Hills, is a public real estate investment trust whose stock is traded on the New York Stock Exchange under the symbol GLR. On an average day, only about 2,000 of its outstanding common shares change hands.

To be sure, no one will ever confuse tiny G&L, which posted revenue of $34 million last year, to mighty CB Richard Ellis, which recorded $1.2 billion in 1999 worldwide revenue. Yet, the efforts to take over the companies bear some similarities.

In G&L’s case, CEO Daniel M. Gottlieb (he’s the “G” in G&L) and president Steven D. Lebowitz (the “L”) recently offered to pay $10 a share for the 71% of outstanding common stock that they don’t already own. Likewise, some of CB Richard Ellis’ top brass are part of the group that’s trying to take their firm private by buying the 62% of shares their own group doesn’t control.

Also like CB Richard Ellis, G&L has formed a special committee of its board to weigh their buyout offer. But while there’s no quick end in site for the takeover battle at CB Richard Ellis, G&L could be taken private fairly quickly. While Gottlieb and Lebowitz already own 29% of the company’s outstanding shares, they would automatically own 43% if they simply convert the operating partnership units they own.

Though 43% would fall short of a majority interest, it wouldn’t take the two men much to buy the relatively few more shares needed to gain control. Other shareholders have also benefited in recent months: G&L’s stock closed at $9.62 a share Friday, up nearly 50% from its 52-week low of $6.50.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.