Gecina cancels Metrovacesa split after stock slide makes agreed portfolio-for-shares swap uneconomic

French REIT Gecina, the nation's second largest listed property country, has abandoned its agreement to separate from Spain's struggling quoted group Metrovacesa which owns 27% of its outstanding equity, saying it is no longer economic. An accord to split the two was reached in February 2007 when the share price was trading around a five-year peak at e145. However, six Spanish banks have taken control of Metrovacesa in the interim and Gecina's stock price has dropped by 77%. Gecina was last trading around e38, well up on a recent low just under e26 and compared to a 52-week range of e25.85-e85.86. Current market capitalisation of e2.4bn compares to an asset base at end-2008 of e12.4bn. The dramatic fall in the Gecina stock price means this is no longer equivalent to the portfolio of Paris office to be swapped.