German retailer Metro AG (MEO.XE) confirmed Wednesday it is in talks with investor Nicolas Berggruen and Austrian-based Signa on the possible disposal of its Kaufhof department store chain.

"Talks are at an initial stage," Metro spokesman Kilian Roetzer said, responding to a report from newspaper group WAZ that says Berggruen has made an offer for Kaufhof. Berggruen is also an investor in German retail chain Karstadt.

Citing people close to the matter, the report says Berggruen wants to combine Kaufhof and Karstadt. The report notes the Metro Group's supervisory board will meet Wednesday.

German business daily Handelsblatt reported Tuesday that Greek investor George Economou, an investor in real estate group Signa, is also interested in bidding for Kaufhof.

According to the report, Signa will bid a minimum of EUR2.4 billion.

The spokesman declined to comment on potential bids for Kaufhof, but said the amount mentioned in the Handelsblatt report indicates that Signa's intentions are serious.

A spokesman for Signa wasn't immediately available for comment to Dow Jones Newswires.

-By Natali Schwab, Dow Jones Newswires; +49 69 29725119; natali.schwab@dowjones.com