Siemens in talks with Gores for SEN sale -paper

FRANKFURT, July 23 (Reuters) - U.S. investor The Gores Group is the front-runner in talks about the sale of Siemens AG's (SIEGn.DE) troubled corporate telecoms unit Siemens Enterprise Networks (SEN), a German newspaper reported on Wednesday.

Talks were most advanced with the U.S. private equity group, the Financial Times Deutschland quoted a financial source as saying.

The SEN unit, which has been for sale for two years, has lost more than 1 billion euros ($1.59 billion) over the last two years but a restructuring of the unit, including cutting up to 6,800 jobs, is already bringing improvements.

Siemens rival Alcatel-Lucent (ALUA.PA), Nortel NT.TO and financial investor Cerberus [CBS.UL] have all been touted as possible buyers.

But the FTD said that talks with Cerberus were now on hold.

Siemens was not immediately available for comment.

(Reporting by Eva Kuehnen; Editing by Quentin Bryar)