Banks appointed to value Colonial merger

International banks Citigroup and Calyon have been appointed by property companies Inmoracal and Inmobiliaria Colonial to value and decide on the stock exchange rate for their mega merger.

The merger, expected early next year, will create the second biggest real estate company in Spain after Metrovacesa.

The most difficult stage of the process is the assessment of the companies' share value. Inmoracal's stock has increased 370% in value this year, while Colonial has seen an increase of about 28% to more than EUR 61 a share.

The group resulting from the merger will keep its headquarter in Barcelona and it will use the Colonial name.