UPDATE 1-China's Haitong to buy NWS stake in Taifook-source

(Adds details, background)

By Victoria Bi

SHANGHAI, Nov 14 (Reuters) - Haitong Securities (600837.SS) has agreed to buy NWS Holdings' (0659.HK) 62 percent stake in Taifook Securities (0665.HK), a source said on Saturday, in a deal valuing Taifook at $454 million.

The deal marks the first purchase of a Hong Kong brokerage by a Chinese counterpart.

NWS had said in a posting to the Hong Kong stock exchange on Wednesday that it was in talks to sell some or all of its interest in Taifook, but did not disclose the buyer.

Taifook shares jumped nearly 13 percent on Thursday after the announcement, and another 6.6 percent on Friday to close at HK$4.84.

The source said Haitong Securities would pay about HK$5 per share for the NWS stake, valuing Taifook at about HK$3.5 billion ($454 million). Following the purchase, Haitong intends to make an offer for all remaining Taifook shares, the source said.

The source had direct knowledge of the deal but was not allowed to speak publicly about the process.

Haitong will buy the stake through a Hong Kong subsidiary. Earlier reports indicated that China Construction Bank (601939.SS) may be the buyer.

"Haitong is the real buyer, and wants to buy the whole company," said the source, adding that an announcement was expected to come soon.

The purchase is part of Haitong's broader plans to become a more international brokerage group. The company's holdings already include two fund houses, two direct investment companies, and a Hong Kong futures company.

The company has previously indicated it wants to purchase other financial services firms to create a more complete business, and use Hong Kong as its base for expansion. (Reporting by Victoria Bi; writing by Doug Young; Editing by Michael Flaherty and Ron Popeski)