Intel Capital to invest $12 mln in SMG Broad Band -sources

SHANGHAI, April 10 (Reuters) - Intel Capital is planning to invest $12 million in Shanghai Media Group Broad Band, two sources familiar with the deal said on Thursday.

Intel Capital, which this week announced a new $500 million China investment fund, will also collaborate with Shanghai Media Group Broad Band on technology research and product development of an online TV platform, the sources said.

A spokeswoman for Intel confirmed an event was being held later on Thursday in connection with a state-run news agency but declined further comment.

Shanghai Media Group Broad Band is a unit of Shanghai Media Group, China's second-largest media group by revenue, and operates audio and visual programmes over the Internet.

Intel Capital, the investment arm of Intel Corp (INTC.O), on Tuesday announced a $500 million China investment fund, aimed at wireless broadband, media telecommunications and clean technology companies. (Reporting by Sophie Taylor; Editing by Anne Marie Roantree)