* Says not negotiating any concrete deal with shareholders
* Colonial shares up 9.1 percent to 0.982 euro
(Recasts with comment from Grupo Villar Mir)
MADRID Feb 25 Family-owned Spanish group Villar
Mir said it was looking at assets owned by Colonial,
after a report that it was studying a bid for the loss-making
real estate firm's commercial property business.
Colonial had nearly 3.5 billion euros ($4.6 billion) debt as
of September, and assets worth 5.2 billion euros. It is 90
percent-owned by former creditors after a debt-for-equity swap.
News website El Confidencial reported on Monday that Villar
Mir - controlled by the owner and chairman of Spanish builder
OHL - was studying a bid for Colonial's commercial
"Grupo Villar Mir has been studying a deal involving
Colonial ... but any possible deal would not have any direct or
indirect impact on OHL," it said on Monday.
Colonial, with a market capitalisation of about 200 million
euros, has spun off toxic property assets into Asentia, a new
unit created in 2011, and kept hold of healthier parts of its
Dozens of property firm have collapsed in Spain after a
property bubble burst and as house prices fell around 40 percent
from their 2007 peak.
While Colonial has said it expected to begin refinancing
talks with creditors soon on debt that comes due in 2014, banks
have become more reluctant to refinance property debt, with no
recovery of the battered market in sight.
Colonial declined to comment on the El Confidencial report.
Its shares were up 8.9 percent at 0.98 euro at 1255 GMT.
($1 = 0.7598 euro)
(Reporting by Tracy Rucinski and Tomas Cobos; Editing by Dan