Financial Watchdog Targets Suspicious Trades in Douglas Elliman Takeover Saga
FINRA is investigating trading activities preceding a failed takeover of Douglas Elliman by Anywhere Real Estate. The probe aims to uncover who was aware of the bid before it became public. Douglas Elliman flagged a stock purchase by board member Patrick Bartels, though it's unclear if this triggered the review.
The Financial Industry Regulatory Authority (FINRA) is currently investigating trading activities involving Douglas Elliman stock that preceded a failed takeover bid by Anywhere Real Estate. The inquiry, revealed for the first time through letters obtained by Reuters, seeks to determine who knew about the takeover offer before it became public in late May.
FINRA, which oversees U.S. market trading, requested detailed information from Douglas Elliman as part of a routine review. This includes communications, board minutes, and trading policies. The review has not yet led to any allegations of wrongdoing but scrutinizes a May 7 stock purchase by board director Patrick Bartels, who was permitted to buy $250,000 worth of shares.
Douglas Elliman, a luxury real estate brokerage, has been in the spotlight following this inquiry and other legal challenges. Anywhere's takeover discussions fizzled out in June, and recently, brokerage Compass announced a deal to acquire Anywhere in a transaction valued at $4.2 billion.
(With inputs from agencies.)
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