Activist investor Teleios Capital Partners LLC called on Aareal Bank AG to conduct a "competitive, dual-track process" for a full and minority sale of its software business Aareon AG, despite the German lender ruling out such a move in the short-term, Reuters reported.

Aareal Bank recently disclosed that it intends to grow its consulting and services division, which includes the company's banking business and Aareon, over the coming years.

Teleios, which holds a 5.37% stake in Aareal Bank, told the newswire that it welcomed recent reports suggesting the lender was open to selling the IT unit. In October 2019, the Swiss asset manager requested a strategic review of Aareon, but it was declined by the bank.

Meanwhile, a source close to the matter told Reuters that Teleios expressed its concerns to Aareal Bank's supervisory board in a December 2019 letter that the lender's management continued to pursue a minority stake sale in Aareon without giving enough consideration to other viable alternatives.