Jon Douglas Confirms Merger Talks, Says No Deal on Horizon

Well-known Los Angeles real estate broker Jon Douglas and Prudential California Realty confirmed Friday that they have held discussions during the past year about a possible merger.

Douglas, whose 30-office company is the dominant player on the Westside, said in a statement that “none of the discussions have produced anything of substance.” Douglas said he has had discussions with other brokerages as well.

“I’m always looking for new opportunities to strengthen Jon Douglas Co. and to make it even more competitive,” said Douglas, whose company has expanded through several acquisitions. “We are particularly interested in associating with firms where the culture and style of the owner and associates complement those of Jon Douglas Co.”

However, Prudential Realty Chief Executive George Rathman said in a statement, “Our company is not for sale.” He added that his firm remains interested in buying other businesses and “would discuss a reasonable merger with an appropriate partner.”

Prudential California pays a fee to use the Prudential name from Costa Mesa-based Prudential Real Estate Affiliates, the real estate brokerage arm of Prudential Insurance.

Rumors about a possible deal began spreading this week after rival broker Fred Sands told his managers in a confidential memo that Douglas was about to buy Prudential California for $33 million. Despite the denials, Sands said Friday that he expects an acquisition to take place within two weeks.

“We could be mistaken,” said Sands, whose namesake agency has 41 offices in Southern California. “But we believe it to be true that a merger is taking place. My sources are pretty good.”