MADRID: A deal by the Spanish real estate company Colonial to sell its rental business to Investment Corporation of Dubai sent its shares sharply higher Wednesday, but conditions remained before the sale could be completed.

ICD and Colonials two main shareholders issued a statement late Tuesday laying out the framework of a deal to split the company, restructure its mountainous debt, sell ICD the rental unit for about \1.9 billion, or $2.9 billion, and relist the rest.

It first needs to reach a binding deal with Colonials creditor banks, led by Goldman Sachs, Eurohypo, Calyon and Royal Bank of Scotland.

Before the closing of the deal, which may not be until October, even the price of \1.19 a share for the rental unit is up for renegotiation, depending on how much debt is spun off with the more cyclical land and development assets.

“The information theyve given is as untransparent as the rest of the deal has been,” Banesto brokers said in a note to clients. “Far from having a firm agreement we still have thousands of conditions before the deal can close.”

He added: “In the best of worlds, the minimum time frame will be five months plus what it takes to launch a full takeover bid.” Banesto recommended investors sell the stock even though it could have touched its lowest point.

On the market, investors brushed off all the unknowns about the bid and sent the stock up 15.3 percent, almost erasing a steep fall Monday when the market doubted any deal would be reached. Shares closed at \1.13, up 15 cents. The shares were suspended on Tuesday.

Stock market documents on Wednesday showed Colonials former chairman, Luis Portillo, had reduced his stake in the company to 34.2 percent from 39.7 percent.

Antonio Lopez, head of analysis at Fortis Bank, valued Colonials land and development unit at 35 cents a share and said the stock should rise toward \1.48.

ICD, an $82 billion fund that is the investment arm of the Dubai government, has been in talks with Colonials main shareholders since early February.

An initial proposal to buy the whole company with cash and bonds lapsed this month without agreement and ICD switched its focus to the rental business, which has shopping centers and offices in Barcelona, Paris and London.

Last year, the rental unit had lease revenue of \313.8 million - 54 percent from its 90 percent stake in Sociйtй Fonciиre Lyonnaise - with pretax earnings of \288.9 million. Colonial valued its assets at \9.2 billion.

In its end-of-year results, Colonial valued its land and development assets at \2.5 billion, but in the deal with ICD they are valued at \2.1 billion, with \962 million of debt.

The whole company has \9 billion of debt, including a \7.2 billion syndicated loan.