Shares of Aveo, which runs over 90 retirement homes across Australia, rose their most in two months after the announcement. "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 firm said in a statement. Brookfield was not immediately available to comment. ($1 = 1.4211 Australian dollars) (Reporting by Aditya Soni and Aby Jose Koilparambil in Bengaluru; Additional Reporting by Devika Syamnath; Editing by Stephen Coates)