UPDATE 1-CCB is in talks to buy Taifook Sec -source

BEIJING Nov 12 (Reuters) - China Construction Bank (0939.HK) (CCB) is in talks to buy control of Taifook Securities (0665.HK), to give it a solid footing in Hong Kong's lucrative retail securities market, a source close to the deal said on Thursday. NWS Holdings Ltd (0659.HK) said in a posting to the Hong Kong stock exchange late on Wednesday that it was in talks to sell its 61.86 percent interest in Taifook, but did not disclose a buyer.

Taifook shares jumped nearly 13 percent in Thursday trade after local media reported that the buyer could be China Construction Bank (601939.SS), China's second-largest lender.

CCB International (CCBI), the Hong Kong-based investment banking unit of CCB, had been talking with NWS Holdings about taking over Taifook for a long time, according to the source.

"Price is the major issue," said the source, who asked not to be named because of the sensitive nature of the deal.

CCBI was likely to succeed in acquiring Taifook eventually, thus strengthening its brokerage business and expanding local customer base, the source said. The purchase would help to round out CCB's investment banking operation in Hong Kong, where many Chinese companies are traded on the local bourse.

"Buying Taifook Securities would be a good supplement to the two business segments," the source said.

Taifook employed 1,016 staff and had 11 retail outlets in Hong Kong and one in Macau as of the end of June.

Taifook and NWS spokesmen were not immediately available for comment. (Reporting by Xie Heng; Writing by Michael Wei; Editing by Ken Wills, Doug Young and Chris Lewis)