Gecina chairman says to sell 7 pct stake-report

PARIS, April 17 (Reuters) - Gecina (GFCP.PA) Chairman Joaquin Rivero intends to sell shares representing 7 percent of the French property firm through an institutional offering before the end of June, he told French daily La Tribune.

"It is maybe not the best time to sell at the best price but I think this is the best solution," Rivero said, adding the move would free him to carry out his strategy plans for Gecina.

Rivero's decision came after French stock market regulator AMF accused him and Gecina's other big shareholder, the Soler family, of acting in concert to build up their respective stakes of 17.8 percent and 15.3 percent.

The AMF said Rivero and Soler could in total end up with 42.7 percent of Gecina's share capital, following a proposed buyback by Gecina. This would take them above the 33 percent shareholding limit below which a party can hold a stake in a firm without being obliged to launch a full bid.

Rivero and Soler have denied acting in concert in buying up Gecina shares.

Asked whether Gecina had been looking at an acquisition to dilute Rivero's stake, Rivero said: "I indeed had envisaged to buy a group. We were in the race for a Dutch group, but in the end our offer was not the highest."

Rivero denied Gecina had any interest in Spanish property firm Colonial (COL.MC), and said he was not ready to overpay for a possible acquisition of Colonial subsidiary SFL.

Once Gecina has completed its share buy-back, Rivero said he planned to sell half of the company's residential portfolio, which he valued at a total 5 billion euros, in order to boost the company's office portfolio.

Gecina will also focus on improving its cash flow to increase dividends, and boost its liquidity so that the group is ready to invest in "promising assets," Rivero said.

Gecina shares were down 1.2 percent at 92.50 euros by 0735 GMT, bucking a slightly positive French stock market. (Reporting by Marie Maitre; Editing by Paul Bolding)