Bell Industries Investor Unloads Some Shares

An investment group disclosed that it sold about two-thirds of its Bell Industries Inc. holdings after company shares soared on reports that billionaire investor Warren Buffett had acquired a stake in the El Segundo-based systems integrator. Steel Partners sold more than 1.1 million common shares from Monday through Wednesday for $5.76 to $6.37 apiece, according to an amended Schedule 13D filed with the Securities and Exchange Commission. The shares were worth about $7.1 million. In October, Bell Industries said it rejected as “inadequate” an offer from Steel Partners to buy the company for $5.30 a share.

Bell Industries shares have risen 40% since Dec. 10, the last trading day before Buffett reported his investment, illustrating how markets often react to news of purchases by the famed stock picker. On Thursday, Bell Industries shares rose 75 cents to close at $7 on the New York Stock Exchange. They had touched a two-year high of $7.13 during the day.

Bell Industries makes most of its money from designing, engineering and laying out computer networks. Steel Partners now holds a 5.5% stake in Bell, down from a 17.4% stake reported previously. That places Steel Partners’ holdings in line with Buffett’s, who last week reported holding a 5.3% stake as of Dec. 1.