BERLIN (Reuters) - German real estate companies LEG Immobilien and TAG Immobilien are in talks about a potential combination of their businesses, LEG said on Friday.
LEG would offer TAG shareholders to exchange their shares for LEG stock, the group said in a statement.
"At this stage it is uncertain whether an agreement will be reached and whether a transaction will be announced," LEG added.
Shares in TAG were up 4.6% at 1205 GMT, while LEG shares were up 0.3%, paring most of their earlier gains.
Both companies are listed in German mid-cap index MDAX <.MDAXI> and have a combined market capitalisation of more than 10 billion euros.
(Reporting by Thomas Seythal; Editing by Maria Sheahan)