PAI Bids on French Homebuilder

PAI Partners has offered to acquire U.S. homebuilder KB Home's 49% stake in French subsidiary Kaufman & Broad. KB says that at current exchange rates, the offer would equal cash proceeds from the sale of more than $800 million.

“After a thorough review of various strategic alternatives with respect to its French operations, which included conducting a competitive bidding process launched earlier this year, KB Home and its board of directors believe the proposed transaction would be in the best interest of its shareholders,” said Jeffrey Mezger, KB Home's president and CEO.

PAI's offer is binding but remains subject to customary terms and conditions including regulatory approval. The transaction could close during the third quarter of 2007.