Colonial says to sell SFL stake

MADRID, March 31 (Reuters) - Indebted Spanish property company Colonial (COL.MC) said on Monday it intends to sell its 84 percent stake in French company Societe Fonciere Lyonnais SFL.PA.

Colonial said it will hire a prominent investment bank to handle competing bids in an attempt to gain the best price for its SFL shares.

It said its board will meet again to approve the sale plan and will continue to look at opportunities to refinance the company's debt. (Reporting by Clara Vilar and Joe Ortiz)