BayernLB mulls giving away troubled HGAA unit -source

MUNICH Dec 10 (Reuters) - German Landesbank BayernLB [BAYLB.UL] is considering giving away a majority stake in its troubled Austrian unit Hypo Group Alpe Adria (HGAA) to Austria, a source familiar with the talks said Thursday.

The move marks the latest attempt by Munich-based BayernLB to clean up its balance sheet and shed its exposure to problem loans in Eastern Europe.

BayernLB's Austrian unit HGAA has a large exposure to problem loans in Eastern Europe.

German daily Handelsblatt first reported that BayernLB was prepared to surrender control of HGAA said in an advance copy of its Friday edition.

"Talks are currently being held to find a solution," said a spokesman of BayernLB.

Austrian authorities have been in crisis meetings to seek to resolve problems for the troubled Austrian lender. BayernLB on Thursday confirmed it is in talks to find a solution for its Austrian unit.

Austria's central bank said earlier it considers HGAA to be of systemic importance in Austria and the Balkans and bank governor Ewald Nowotny urged a swift resolution of HGAA's problems. [ID:nGEE5B91C2] (Reporting by Irene Preisinger; writing by Edward Taylor)