GENERAL Electric Co is considering a bid for Inmobiliaria Colonial SA, the Spanish real estate company that's lost about 60 percent of its market value in six months.
GE will seek more information about Barcelona-based Colonial before deciding whether to make an offer, its Spanish property unit said yesterday in a regulatory filing. Colonial has a market value of about 2.5 billion euros (US$3.6 billion), said Bloomberg News.
"GE would be buying the company and its assets at a huge discount at the current market price," said Alberto Espelosin, who helps manage about US$12 billion including Colonial shares at Ibercaja Gestion.
Colonial has assets of about 12 billion euros. The company's net debt amounts to about 8.9 billion euros, according to its Website.
Colonial shares climbed 10 cents to 1.60 euros yesterday.