China's Huaneng eyes stake in power utility InterGen -report

HONG KONG Aug 18 (Reuters) - China Huaneng Group, the nation's biggest electricity producer, is in advanced talks to buy a 50 percent stake in U.S.-based power utility InterGen NV for about $1.2 billion, Bloomberg reported, citing two people with knowledge of the matter.

The stake would give China Huaneng access to InterGen's 12 power plants in the U.K., the Netherlands, Mexico, Australia and the Philippines, the report said.

Final terms of the purchase of the stake from GMR Infrastructure Ltd. (GMRI.BO), an Indian builder of roads and airports, are still being negotiated, the report said.

The deal may be valued at as much as $1.4 billion, including payments for taking over some non-operating assets, one of the sources said.

The press official for China Huaneng was not immediately available for comment on the report.

Bloomberg had said that a GMR official declined to comment.

The transaction would be China Huaneng's largest overseas purchase since it bought Singapore's Tuas Power Ltd. for $3.1 billion in March 2008.

GMR Infrastructure, based in Bangalore, bought 50 percent of InterGen in 2008 for $1.1 billion from a fund owned by American International Group Inc. The rest of InterGen is owned by Ontario Teachers' Pension Plan. (Reporting by Sui-Lee Wee in HONG KONG, Jim Bai in BEIJING; Editing by Ken Wills and Valerie Lee) ((suilee.wee@thomsonreuters.com; +852 2843 6314; Reuters Messaging: suilee.wee.reuters.com@reuters.net))