UPDATE 2-Temasek eyes AXA China stake, valued at $1.05 bln

* Temasek, Blackstone, KKR eyeing Taikang Life stake-sources

* Deal document explains AXA's 15.6 percent stake in Taikang

* Document says Singapore's GIC already owns 7.9 pct

* First round bids due on Friday -sources

(Adds sources comment, industry background)

By George Chen and Michael Flaherty

HONG KONG, Nov 2 (Reuters) - Singapore's state investor Temasek [TEM.UL], Blackstone Group (BX.N) and KKR are among the firms expected to submit bids soon for AXA's (AXAF.PA) stake in China's No.4 life insurer Taikang, sources said, an investment AXA values at $1.05 billion.

First-round bidding for Beijing-based Taikang Life is due on Friday, with AXA expecting to close the deal before the end of this year, the sources, who are directly involved in the auction, told Reuters on Monday.

Taikang's total assets are worth $28.12 billion, according to an auction-related document obtained by Reuters.

The sale document says that Taikang has a 7.9 pct market share in China's life insurance market as of 2008, ranking Taikang No.4 behind China Pacific Insurance (Group) Co Ltd (601601.SS), which is already partly owned by the U.S. buyout giant Carlyle Group [CYL.UL].

The document also says that French insurer AXA's 15.6 stake is worth $1.05 billion and Taikang's 2008 net income reached $247 million.

"This price is just for bidders' reference and I am pretty sure the final price can be higher than that as the competition for the deal among these big names like Temasek is going to be very tough," said one source.

AXA officials in Hong Kong, and private equity firms Blackstone and KKR were not immediately available for comment. Temasek said it did not comment on market speculation.

The sources told Reuters on Oct. 22 that AXA had hired Morgan Stanley (MS.N) to advise on the sale [ID:nHKG263094].

According to the sale document, another Singapore investment fund, Government of Singapore Investment Corp. [GIC.UL], already owns 8 percent of Taikang Life.

The sources and the person who provided the document, who was also directly involved in the auction, were not able to speak publicly about the process.