German retail group Metro has halted attempts to sell its department store subsidiary, Galeria Kaufhof. Metro said it had suspended talks with interested parties because of worsening conditions on the financial markets.
German retail group Metro has halted attempts to sell its department store subsidiary, Galeria Kaufhof. Metro said it had suspended talks with interested parties because of worsening conditions on the financial markets.
'The present situation on the capital markets does not offer suitable conditions for such an important transaction', said Metro's CEO Olaf Koch.
The Kaufhof business is estimated to be worth between EUR 2 bn and EUR 3 bn with the company owning half of its 140-odd store buildings.
Several business heavyweights have fielded indicative bids for Kaufhof. In November, Nicolas Berggruen, owner of the Karstadt department store chain, reportedly teamed up with US group Blackstone to mount an improved offer for Kaufhof.
Earlier, Metro had granted access to Kaufhof's financial data to investor René Benko of Austrian firm Signa.
A third group consisting of wealthy German families and fronted by Wolfgang Urban, the former chief executive of collapsed retail group KarstadtQuelle, was also said to have entered the race.
