GE weighs sale of $2.2 billion Bank of Ayudhya stake: report

(Reuters) - General Electric Co (GE.N) is considering selling its $2.2 billion stake in Thailand's Bank of Ayudhya Pcl BAY.BK, Bloomberg reported, citing two sources.

Potential buyers include Malayan Banking Bhd (MBBM.KL) according to one source, Bloomberg reported.

Thai media have reported that Malaysian lender CIMB Group Holdings Bhd (CIMB.KL) could be interested in buying GE's 33 percent stake in Bank of Ayudhya, Thailand's fifth-largest lender.

GE officials declined to comment on their plans for the stake.

Bank of Ayudhya has expanded its operations since GE's investment. It bought stakes in GE Capital's Thai-based financial businesses and loan portfolios from Thai units of HSBC Plc (HSBA.L)(HBC.N).

GE has been paring down its GE Capital unit after the financial services business saddled the company with billions in losses during the credit crisis.

The firm sold its Business Property Lending Inc division for $2.51 billion to private equity-backed EverBank Financial Corp (EVER.N) in July.

Bank of Ayudhya's shares closed up 2 baht at 34 baht on Wednesday.

GE stock was up 1.2 percent at $21.85 amid a broad rise in U.S. stocks on Wednesday.

(Reporting by Jochelle Mendonca in Bangalore, Additional reporting by Scott Malone in Boston; Editing by Saumyadeb Chakrabarty and Jeffrey Benkoe)