Bami rules out merger with Inmobiliaria Colonial

Spanish property firm Bami effectively ruled out a merger with rival Inmobiliaria Colonial on Wednesday, saying it did not favour a new deal shortly after buying a stake in another company.

Inmobiliaria Colonial said last Thursday it had held informal talks with shareholders of Bami and another Spanish real estate firm, Metrovacesa, to discuss a possible three-way merger worth some 2.5 billion euros ($2.49 billion).

Bami paid a 60 percent premium for a controlling 24 percent stake in Metrovacesa in June and has said it may announce plans this month to integrate the two companies.

In a statement issued after its board met on Wednesday, Bami said its main strategic concern at present was 'the process begun with the acquisition' of its stake in Metrovacesa.

'(The company) considers it would be negative for the interests of its shareholders and rash from an organisational and management viewpoint to propose a new corporate operation before realising the objectives of the previous transaction,' it said.

Ranked by market capitalisation, Metrovacesa is the second biggest firm in Spain´s fast consolidating property market with a market value of 1.35 billion euros ($1.35 billion). Colonial is ranked third with 829 million euros and Bami fifth with 288 million euros.

Bami had already denied it was engaged in negotiations with Inmobiliaria Colonial aimed at Colonial acquiring a significant stake in Metrovacesa.

However, it said last week, there had been informal talks with several Spanish and overseas real estate groups, including Colonial, which had expressed interest in a deal with Metrovacesa.

(source: Reuters)

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