FRANKFURT Private equity investor Oaktree (OAK.N) is in advanced talks to merge its German office real estate unit Acorn with competitor Prime Office PMOG.DE, Prime Office said in a statement on Wednesday.
The combined companies would be listed and hold assets worth 2.3 billion euros, Prime Office said, adding the aim was to reach an agreement by the European summer.
Oaktree, which already holds 8.4 percent in Prime Office, would become the majority shareholder in the company after the merger. The deal would allow Oaktree to attract new investors for the merged company and, by floating on the stock exchange, give it the option of exiting the investment later.
"Should the talks progress positively, the companies plan to take the necessary steps that are required for a merger including the determination of the merger exchange ratio and the appointment of the merger auditor," the statement said.
Prime Office's share rose 15.7 percent to 3.70 euros at 0940 BST on Wednesday.
(Reporting by Peter Dinkloh and Andreas Kroener; editing by Patrick Graham)