UPDATE 1-Christchurch seeks further 2.5% of Lyttelton Port

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WELLINGTON, Nov 21 (Reuters) - A New Zealand local council is looking to increase its majority stake in Lyttelton Port Company (LPC.NZ), offering to buy an extra 2.48 percent of the port on market at a 22 percent premium, the council said on Friday.

Christchurch City Council Holdings, an investment arm of the local city council, said it would pay NZ$2.75 a share for a further 2.536 million shares as allowed under New Zealand's takeover code. That would take its holding to 78 percent.

The company wants to delist the port company from the stock exchange and was looking to buy out minor shareholders.

The Christchurch City Council failed in an attempt to privatise the port company in 2006 when the rival Port of Otago bought a blocking 15 percent stake, which it still holds.

The two companies, which are the biggest port companies in the South Island, last month said they would look at ways of integrating their operations.

Chief executive of the council's holding company, Bob Lineham, said it had rejected the idea of making another takeover offer as "not appropriate at this time".

He said the port company's listing was a hindrance to the holding company.

"Unfortunately, because of the listed status of Lyttelton Port Company, CCHL is unable to receive confidential strategic information on the port, or participate in key decisions." ($1=NZ$1.89)