FRANKFURT (Reuters) - Deutsche Annington (DE:ANNGn) Chief Executive Rolf Buch has sought to temper speculation that the German real estate group could make takeover bids for smaller rivals Deutsche Wohnen (DE:DWNG) and LEG Immobilien (DE:LEGn).
Deutsche Wohnen CEO Michael Zahn told German daily Handelsblatt last month that a merger could make sense, but Buch played down the possibility in an interview published by the paper on Thursday.
"We want to have a portfolio that is balanced across Germany," Buch said. "If we bought a company now that was focussed on one city or region, like Deutsche Wohnen in Berlin, then we'd be back at a regional concentration.
"We would have to explain that to the capital market very carefully."
A purchase of LEG, likewise, would give Deutsche Annington a much stronger concentration in the German state of North Rhine-Westphalia, he said.
Deutsche Annington has been expanding rapidly by buying a clutch of competitors, including Gagfah and most recently Suedewo. It has raised its capital six times since March 2014 to pay for its acquisitions.