Berlin, May 20 - German retailer Metro has discussed plans for a merger of its department stores with those of stricken rival Arcandor with the Economy Ministry, a source familiar with the matter told Reuters.
The source said on Wednesday that Metro Chief Executive Eckhard Cordes met on Tuesday with Economy Minister Karl-Theodor zu Guttenberg to present his model for merging Metro's Kaufhof department store chain with Arcandor's Karstadt.
Metro, concerned about a possible state aid payment to its competitor Arcandor, has already presented its plan to local government officials.
Arcandor, which initially opposed the merger idea, has called for a meeting with Metro and investment bank Goldman Sachs to hammer out a plan for Karstadt.
Arcandor last week said it was planning to ask the German government for 650 million euros ($883.6 million) in government loan guarantees and a loan from the German state development bank.