KB Home Gets Bid
For French Unit Stake
by Steve Goldstein
From The Wall Street Journal Online
May 14, 2007
Los Angeles-based home builder KB Home on Friday said it received a takeover offer for its controlling stake of Kaufman & Broad SA, valued at €582 million ($787.1 million).
The offer for KB Home's stake in the French home builder is valued at €53.13 a share -- or 15% below the stock's closing price Thursday.
|
KB Home Names Bollenbach As KB Home's Profit Tumbles 84% Despite Lower Cancellation Rate |
More on KB Home
KB Home said it is evaluating the offer from the undisclosed suitor and that it is evaluating other strategic alternatives, including selling the rest of its shares in a public offering.
Shares of Kaufman & Broad dropped 3.9% to €59.80 in afternoon Paris trading.
Unlike its American parent, Kaufman & Broad is enjoying a solidly growing housing market in its home country.
"The ongoing boom in the French housing market has benefited
K&B, and the company has used this favorable environment to grow in scale and
increase its regional diversification within France," Fitch Rating Service said
in a recent confirmation of the company's credit outlook.
KB Home holds a 49% stake in Kaufman & Broad and holds 66% of the voting rights.
Email your comments to rjeditor@dowjones.com.
