Market Chatter -- Corporate finance press digest

LONDON Feb 18 (Reuters) - The following corporate finance-related stories involving U.S. and European companies were reported by media on Wednesday:

* The founders of India's top-listed realty, DLF Ltd (DLF.BO), are in talks with private equity funds such as Blackstone Group (BX.N) and Bahrain-based Taib Bank to sell a majority stake in an affiliate, the Economic Times said. [ID:nBOM434627]

* Canada's Bank of Nova Scotia (BNS.TO) has expressed interest in buying a stake in Thailand's Siam City Bank (SCIB) SCIB.BK, the Nation newspaper reported, quoting an industry source. [ID:nBKK395239]

* Royal Bank of Scotland Group Plc (RBS.L) needs to find up to 8 billion pounds ($11.3 billion) if it is to subscribe to a state-backed insurance scheme designed to cap any losses on toxic assets, The Daily Telegraph newspaper reported. [ID:nLH207289]

* The United States and Europe should follow China's example and establish "bad banks" to manage toxic assets as soon as possible, the head of China's largest bad bank told the Financial Times.

* Corus, owned by India's Tata Steel (TISC.BO), has become the first big British industrial group to be caught by the reduction of cover to its suppliers by one of the world's largest credit insurers, Euler Hermes, the FT said.

* U.S. distressed debt fund Oaktree Capital is in talks to take control of British estate agency Countrywide, the FT reported.

(Compiled by Olesya Dmitracova; Editing by David Holmes)