Krakatau hiring banks for $300-400 mln IPO -source

HONG KONG, Aug 14 (Reuters) - Indonesia's PT Krakatau Steel has begun the process of hiring banks to handle an initial public offering and possible sale of a block of shares to a strategic investor that would raise $300-400 million in total, a source familiar with the matter said on Thursday.

The source, who was not authorised to speak publicly about Krakatau's plans, said top global steelmaker ArcelorMittal (ISPA.AS)(MTP.PA) had expressed interest in buying a stake.

State-owned Krakatau is Indonesia's largest steelmaker.