UPDATE 1-Kit Digital in talks with buyers for possible sale
* Company to announce progress of talks in near future
* Fails to reach agreement with shareholder group over board seats
June 13 (Reuters) - Kit Digital Inc said it is in talks with several parties who have expressed interest in buying the video technology provider.
The company expects to announce the progress of its talks "in the near future," Kit Digital said in a regulatory filing.
Kit Digital in March appointed a special committee to review unsolicited interest from a couple of suitors and named Deutsche Bank Securities Inc as its financial adviser to help explore a potential sale.
The company also said it failed to reach an agreement with JEC Capital Partners, which proposed a slate of four directors for Kit Digital's board last week, as the shareholder group insisted on appointing all of its candidates.
JEC Capital Partners, which reported an eight percent stake in the company as of May 30, put forth its candidates for board seats after four directors Kit Digital directors stepped down in March as part of a management shake up.
Kit Digital's stock, which has lost more than half of its value in the last three months, closed at $3.37 on Tuesday on the Nasdaq.
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