* Countrywide confirms tie-up talks with LSL
* Countrywide shares up 2.8% after early spike
* LSL shares unchanged
(Adds shares, sector background)
By Samantha Machado
Feb 24 (Reuters) - British real estate agent Countrywide
confirmed that it was in talks with larger rival LSL
Property Services about a possible all-share combination
on Monday.
Shares in Countrywide, which was valued at 111 million
pounds ($144 million) at Friday's closing price, rose after
confirmation of the tie-up talks, which were first reported by
Sky News on Sunday.
London-listed LSL's shares were not traded on Monday,
Refinitiv Eikon data showed.
LSL, which has a market capitalisation of around 353 million
pounds, also confirmed the talks between the two companies,
which it said were ongoing. Under British takeover rules, LSL is
required to announce a firm intention to make an offer for
Countrywide by March 23 or walk away.
Countrywide has been trying to recover from a botched 2015
restructuring that led to four profit warnings and a deeply
discounted share issue. A cooling British real estate market as
a result of Brexit has compounded its problems.
However, house prices rose at their fastest pace in nearly
three years last month, adding to signs of a rebound in consumer
sentiment since December's election lifted some of the
uncertainty around Brexit.
Shares in Countrywide, which also competes with Foxtons
rose as much as up 9.1% after the news.
Britain's property sector has seen a pick up in deal
activity since late last year, with Vistry buying
Galliford Try's residential units and mall operator
Hammerson exiting its out-of-town retail locations.
Countrywide in February delayed the sale of its Lambert
Smith Hampton business to John Bengt Moeller, who had been
"indisposed during January", and "due to logistical difficulties
relating to the transfer of the requisite completion monies".
($1 = 0.7714 pounds)
(Reporting by Samantha Machado and Noor Zainab Hussain in
Bengaluru; Editing by Maju Samuel and
Alexander Smith)