Lone Star, Wells Fargo in talks to buy Eurohypo portfolio-source

FRANKFURT, April 18 Thu Apr 18, 2013 7:53am EDT

FRANKFURT, April 18 (Reuters) - Private equity firm Lone Star and Wells Fargo are in exclusive talks to buy a 4 billion pound ($6.09 billion) UK property loans portfolio, put up for sale by Commerzbank, a person familiar with the deal said on Thursday.

A deal could be struck as early as May, the source added.

Commerzbank, Wells Fargo and Lone Star declined to comment.

Germany's second-largest lender is selling the UK property loans business of its mortgage unit Hypothekenbank Frankfurt International, formerly known as Eurohypo as a way to cut down the size of its balance sheet.