* Fonciere currently owns 52 pct of Beni Stabili
* Offering 8.5 Fonciere shares for 1,000 Beni Stabili shares
* Will boost earnings and Fonciere’s market value
* Fonciere to seek Milan share listing (Adds detail, background)
PARIS, April 20 (Reuters) - French property group Fonciere des Regions said on Friday it was in talks to buy out Italian subsidiary Beni Stabili, in the European property market’s latest merger move.
Fonciere des Regions, which owns 52.4 percent of Beni Stabili, said it would offer 8.5 of its shares for every 1,000 Beni Stabili shares before seeking listings in Paris and Milan.
The planned Fonciere deal follows a decision by property group Klepierre to abandon a bid for Hammerson earlier this month.
Taking full control would bring access to Beni Stabili’s 3.5 billion euro ($4.3 billion) real estate portfolio, including Milan office space, the French company said.
It would be earnings accretive and increase the group’s market capitalisation by more than 700 million euros to top 7 billion.
Beni Stabili said it had appointed Lazard as a financial adviser on the deal, which remains subject to approval by Beni Stabili’s independent board members. The deal could be completed by the end of 2018, it said.
$1 = 0.8112 euros Reporting by Sudip Kar-Gupta; Editing by Maya Nikolaeva and Laurence Frost