Suit Targets Stock Buyout by Irvine Co.

Alleging that Irvine Co. Chairman Donald L. Bren is trying to enrich himself to the detriment of investors in Irvine Apartment Communities Inc., a shareholder in the real estate trust filed suit this week to block Irvine Co.’s proposed purchase of the trust’s publicly traded stock.

Attorneys for Irvine Apartment Communities stockholder Bernard Prince argue in the suit that numerous real estate analysts have suggested that Bren’s bid is priced too low and is an effort to preclude the company from seeking higher bids from other suitors.

Irvine Co. officials could not be reached for comment.

The apartment trust’s largest shareholder is the Irvine Co., whose sole shareholder is Bren. The multimillionaire developer proposed the stock purchase--an effort to remove IAC from the public stock market--after Wall Street lost confidence in real estate investment trusts and their share values began plummeting.

Irvine Co. is offering to acquire the stock of IAC it does not already own for $32.50 per share.

The price, according to the suit, is only 6 cents above the 52-week high for the 16.6 million shares. The stock closed Friday at $31.69, off 19 cents a share.