Aareal Bank in talks over Lone Star's Coreal -sources

FRANKFURT Fri Feb 8, 2013 10:27am EST

FRANKFURT Feb 8 (Reuters) - German property financier Aareal Bank is in talks to buy rival lender Corealcredit from its owner, U.S. investor Lone Star, several people familiar with the process said on Friday.

Aareal Bank is looking at financial data from its rival, which Lone Star has been seeking for years to sell, two sources said.

A sale could involve Lone Star taking a stake in Aareal, perhaps in proportion to the two groups' equity capital, of which Aareal has about three times as much as Corealcredit.

French bank Societe General looked at Corealcredit two years ago, but eventually dropped the approach.

Aareal had also looked at Corealcredit several times in the past, the sources said.

This latest approach is still at an early stage, they said.

"But there is some movement in the market again, so something could happen in the next weeks or months," one of the sources said. (Reporting by Kathrin Jones, Arno Schuetze and Alexander Huebner, writing by Jonathan Gould)