(Bloomberg) -- A consortium backed by Centerbridge and Advent International is preparing to make a formal takeover offer for Aareal Bank AG as soon as next week valued at upwards of 1.7 billion euros ($2 billion), people familiar with the matter said.
The private equity firms have largely completed due diligence and have roped in partners including a Canadian pension fund to join their consortium, the people said, asking not to be identified because the information is private. They are now in talks with other potential co-investors, according to the people.
No final decisions have been made, and details of the potential offer could change, the people said. Representatives for Aareal Bank and the private equity consortium declined to comment.
Wiesbaden-based Aareal Bank said last month it was in talks with the investor group as it considered a takeover offer of 29 euros per share, confirming an earlier report from Bloomberg News.
Centerbridge and Advent may need to offer more to satisfy shareholders. Since news of the initial approach, several new investors including Czech billionaire Daniel Kretinsky and Talomon Capital have built up stakes of more than 3% in the real estate lender in the hopes of a higher proposal.
Aareal Bank, which is scheduled to report its third-quarter results on Thursday, has been facing pressure from activist investors Teleios Capital and Petrus Advisers.
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