Martinsa, a Spanish property group, has announced an offer to buy rival Fadesa for €4bn ($5bn), potentially securing itself a stock market listing and joining a list of real estate companies seeking to raise their profile ahead of a shake-out in the overheated market.

The unlisted group, led by Fernand Martin, former president of Real Madrid football club, offered €35.70 per share for the company. Manuel Jové, Fadesa president, has agreed to sell his 54 per cent stake in the Galician company for that price, Mr Martin and Mr Jové said in a communiqué to the stock market commission.

Fadesa shares had jumped 10 per cent to €30 on Wednesday, ahead of the announcement, drawing scrutiny from the stock market commission, which said it was looking into the possibility of insider trading. They closed at €35 yesterday.

Analysts predicted shareholders would leap at Martinsa's offer, which values the company about 15 per cent below net asset value - estimated last year at €4.7bn by Richard Ellis, the property consultancy.

One analyst pointed to the fact that Fadesa's huge land bank is mainly located in Spain, where there is a glut of housing and the once-prized coast is overdeveloped.

Source:  Financial Times