Activist urges Aareal Bank to be open about approaches for Aareon unit

LONDON, May 20 (Reuters) - Activist hedge fund investor Teleios Capital on Wednesday urged the management of German real estate lender Aareal Bank to be transparent about what it called “serious bidders” for its Aareon division that had been rejected.

Teleios, which holds a 6.5% stake in the bank, also called for a dual-track process for both a majority and a minority sale of the software business.

“It is our understanding that for some time, management has regularly received and disregarded expressions of interest in a majority or outright purchase of (division) Aareon from serious bidders,” Adam Epstein, co-founder at Teleios, said in a statement.

Aareal Bank said on Tuesday it was inviting bids from financial investors for a significant minority stake in Aareon .

It said it had nothing further to add on Wednesday. (Reporting by Maiya Keidan in London, additional reporting by Patricia Uhlig in Frankfurt, editing by Kirstin Ridley)