CapCo said to be talks with Canary Wharf Group about Earl's Court site acquisition

Shares in Capital & Counties rallied on Tuesday as it emerged that Canary Wharf Group is in talks with the company about buying a large part of its 77-acre housing development site at Earl's Court.

According to Bloomberg, CapCo is in early-stage talks with Canary Wharf Group, which is owned by Qatar Investment Authority and Canada's Brookfield, and the discussions may not result in a deal.

Bloomberg cited people with knowledge of the matter as saying that other suitors for the project could still emerge.

Capco - which announced last year that it was considering splitting its Covent Garden and Earl's Court estates into two separately listed companies - said back in February that preparations for a demerger were "well advanced" and could be implemented "promptly".

CapCo shares closed up 4.5% at 219p.