PARIS (AFX) - Nexity and mutual banking group Caisse d'Epargne are in exclusive talks about a merger to create a leading French real estate company, the chief executives of both companies said in an interview with Agence France-Presse.
Alain Dinin, CEO of Nexity, would also be chief executive of the new entity, which would include the real estate businesses of Caisse d'Epargne.
The Caisse d'Epargne would have a 51.5 pct stake in the merged company. The exclusive negotiations will run until April 30.
If the talks are successful, the two companies will sign a memorandum of understanding aimed at closing the deal in July.
The new company, keeping the Nexity name, would be listed on the Paris bourse with a market capitalisation of about 5 bln eur, the executives said.
It would have an 8 pct share of the property development market in France, and a 12 pct share of the market for existing home sales. paris@afxnews.com afp/js/rar COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited