UPDATE 2-Japan's Laox in tie-up talks with China's Suning

* Suning says in tie-up talks with Loax, no concrete plans

* Loax talks to potential partners, aims for deal by Sept. 30

(Recasts with comments from both companies)

By Taiga Uranaka and Helen Ding

TOKYO/SHANGHAI, June 18 (Reuters) - Chinese retailer Suning Appliance (002024.SZ) on Thursday said it is in tie-up talks with struggling Japanese retailer Laox (8202.T), as Chinese firms look for bargains in their bid to expand abroad.

"We are in the process of talking," said Suning spokesman Han Feng. "Equity cooperation is one form of cooperation that the two sides do not rule out, but now there is nothing concrete."

Laox spokesman Mitsuhiro Furuta also confirmed that his company was talking with potential tie-up partners.

"When we announced our earnings results last month we said we were looking for a business partner, which would involve our issuing new shares to it," he said.

"And it is true that we are in talks with some parties now. We would like to seal the deal by (Sept. 30). But at this point we cannot comment further."

The companies made their comments after Japan's Nikkei business daily reported the pair were discussing a plan that would see Laox issue roughly 1.5 billion yen ($15.6 million) in shares to Suning and a Japanese firm. The share sale would represent a more than 50 percent stake in Laox.

Suning would then take an interest of around 30 percent to become Laox's principal shareholder with board representation, the report added, without citing sources.

LOAX WOES

Once among Japan's major consumer electronics retailers, Laox has been losing market share to bigger rivals like industry leader Yamada Denki Co Ltd (9831.T).

At its peak, in the business year to March 2001 Laox had revenues of 214 billion yen ($2.2 billion) and ran about 120 stores nationwide.

The company has forecast a ninth straight year of net loss and revenue of 13.2 billion yen for the current financial year ending next March.

Laox has been trying to achieve a turnaround by transforming into a niche player, selling and closing all but 14 of its stores. Its operations are focused on Tokyo's Akihabara district, a mecca for electronics stores.

For its part, Suning is hoping to learn business practices, such as pricing policies and customer services, from Laox, and use the expertise gleaned from operating in the highly competitive Japanese consumer electronics retail market to fuel further business growth, the Nikkei said.

If a deal is reached, it would be the second equity tie-up in the last few months between a Chinese firm looking to boost its global presence and a struggling overseas player.

In May, leading Chinese appliance maker Haier, whose listed units include Haier Electronics (1169.HK), said it would by a 20 percent stake in struggling New Zealand appliance maker Fisher & Paykel Appliances (FPA.NZ) in a deal worth about $50 million. [ID:nWEL466121] ($1=96.31 Yen) (Reporting by Bijoy Koyitty in Bangalore, Taiga Uranaka in Tokyo and Helen Ding in Shanghai; Writing by Doug Young; Editing by Dhara Ranasinghe)