Cerberus Looks to Raise Construction Stake

Cerberus chief Stephen Feinberg must be convinced that construction activity is on the way to a robust recovery. He just won’t give up on BlueLinx Holdings, a building products distributor for residential and commercial construction.

Back in 2010 he tried to acquire 90% of the firm—he owned about 55% at the time. But the shareholders would not go along and Cerberus pulled its bid. Looked like that was that.

But no. One of his funds still owns about 53% of BlueLinx, which of course fell into red ink in the real estate slump but benefits from the construction recovery.

This month the firm announced a plan to offer a $40 million block of shares to stockholders. Cerberus indicated that it may go for whatever number of shares the fund can get.

So it turns out Mr. Feinberg remains interested despite the 2010 disappointment. Perhaps he will end up getting the rest of BlueLinx after all.

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One Response to “Cerberus Looks to Raise Construction Stake”

  1. JP Morgan Highbridge Housing Revival Portfolio « HedgeFundSmarts Says:

    […] Top News and Analysis about Non-Traditional Investing « Cerberus Looks to Raise Construction Stake […]

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