Bell Industries’ Stock Slides 26% on News of Buffett Selling Stake

Shares of Bell Industries plunged about 26% on Tuesday, a day after it was disclosed that billionaire investor Warren Buffett sold his stake in the El Segundo-based computer services company.

Separately, New York-based money manager First Carolina Investors Inc. cut its stake in the company to 4.9% from 7.9% of common shares after Bell issued a cash dividend.

Bell Industries shares fell $1.50 to close at $4.38 on the New York Stock Exchange. On Monday, the company said it plans to move trading of its securities to Nasdaq because shareholders’ equity has fallen below the minimum required for NYSE listing.

First Carolina, based in Buffalo, N.Y., sold 286,900 Bell Industries shares between Dec. 30 and Jan. 14 for $5.88 to $8.38 each, according to an amended Schedule 13D filed with the Securities and Exchange Commission. At those prices, First Carolina’s sales brought in about $1.9 million.

In addition to First Carolina and Buffett, activist shareholder Warren Lichtenstein disposed of shares after Bell issued a $1.30-a-share dividend on Dec. 17, its second cash dividend issued in 1999.

Bell Industries has shed its graphics imaging group and its electronics distribution business in the last two years. The company, which now focuses on systems integration, previously said the $1.30-a-share dividend would reflect some proceeds from the sale of its electronics unit and the disposition of related real estate properties.