Gecina calls off split after banks deal

By Sharon Smyth  |   2008-12-20  |     NEWSPAPER EDITION

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GECINA, France's second-largest property company by market value, has suspended an agreement to split from Metrovacesa after six banks agreed to take control of the Spanish company.

The plan to separate Paris-based Gecina from Metrovacesa, announced in February 2007, was frozen after the Madrid-based developer's biggest shareholder, the Sanahuja family, gave up control to settle its debt, Bloomberg News said.

Metrovacesa owns 26.9 percent of Gecina.

Under the terms of the agreement, Gecina would have gained Metrovacesa assets in Spain, including construction projects valued at about 435 million euros (US$612 million).

In return, Gecina would transfer 1.8 billion euros of properties to a new company.

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