Russia Karusel in sale talks with Wal-Mart-sources

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By Denis Pinchuk

ST PETERSBURG, Russia, Feb 27 (Reuters) - Russian hypermarket chain Karusel is in sale talks with U.S. retail giant Wal-Mart (WMT.N), two sources close to the Russian company told Reuters on Tuesday.

"An investment bank, hired by the owners of Karusel, is holding negotiations with Wal-Mart," one of the sources said.

Karusel, co-owned by Andrei Rogachyov and Alexander Gidra, opened 13 hypermarkets in Russia last year and wants to boost that figure to 50.

Rogachyov and Gidra also own a 21.2 percent stake in X5 (PJPq.L), Russia's top food retailer, created last year when their Pyaterochka discount store chain merged with Perekryostok, the supermarket group owned by Mikhail Fridman's Alfa-Group.

X5, now controlled by Alfa, has an option to buy control of Karusel next year.

"The owners of Karusel have started negotiations with Wal-Mart, because Wal-Mart can offer more money and the format of Karusel is closer to Wal-Mart's," a second source close to X5 said.

Rogachyov confirmed that Karusel had hired investment banks but called Wal-Mart the most promising of a range of possible buyers.

"We are conducting talks with all potential buyers. The task of the bank is to obtain the highest possible price. Wal-Mart is among the possible buyers," Rogachyov said.

Other foreign retailers believed to be on the acquisition trail in Russia include France's Carrefour (CARR.PA) and Britain's Tesco (TSCO.L), which have both been linked to a possible takeover of X5.

((Reporting by Denis Pinchuk, Writing by Douglas Busvine, editing by Erica Billingham; Reuters Messaging: douglas.busvine.reuters.com@reuters.net, tel: +7495 775 1242)) Keywords: KARUSEL WALMART

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