Aveo Group (ASX:AOG) confirmed that the real estate investment arm of Brookfield Asset Management Inc. (TSX:BAM.A) is the preferred party with which the retirement-home operator is holding takeover talks. "Aveo continues to negotiate with Brookfield in respect of its indicative proposal with a view to entering into definitive agreements leading to a Scheme of Arrangement to give effect to the indicative proposal," the company said in a stock market announcement.