Oct. 9 (Bloomberg) -- Spanish developer Realia Business SA jumped as much as 19 percent in Madrid trading on a report that Fomento de Construcciones y Contratas SA and the Bankia group would jointly sell their combined 58 percent stake.
Realia was up about 12 cents, or 17 percent, at 83.5 cents at 2:56 p.m. in Madrid, the biggest intra-day gain since May 27. The Madrid-based company has a market value of about 233 million euros ($315 million).
Expansion newspaper today reported that FCC, which owns 30 percent of Realia, and Bankia, with 27.6 percent, may hire an investment bank as soon as next week to advise on a stake sale they aims to complete by the end of this year.
Bankia has to sell off its industrial equity stakes as part of the terms of a 22.4 billion-euro state bailout last year. FCC said in March it would divest non-strategic assets, including minority stakes in companies that it holds, to generate cash and focus on its core environmental services, water and construction services.
Jose Manuel Velasco, a spokesman for FCC, said by phone today that selling its stake in Realia is part of the company’s asset-sale strategy and the company hasn’t yet mandated any bank for the sale. A spokesman for Bankia, who asked not to be identified by name in line with its policy, declined to comment.
To contact the reporter on this story: Charles Penty in Madrid at email@example.com