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 A group 
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including Gene E. Phillips, former chairman of Southmark Corp., and William S. Friedman, former vice chairman of Southmark,
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 lowered its stake in the Dallas real estate concern to 7.7%, 
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according to a filing with the Securities and Exchange Commission.
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 The group said 
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it sold 455,410 Southmark common shares from Sept. 5 to Oct. 5 for 18.75 cents to 25 cents a share.
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 The filing said 
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the group continues to hold 3,481,887 remaining shares.
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