GOME talking with Dazhong after Suning pulls out

SHANGHAI, Dec 13 (Reuters) - GOME Electrical Appliances, China's top electronics retailer, said it was discussing a possible acquisition of Dazhong Electrical Appliances after rival Suning Appliance Co abandoned a plan to buy Dazhong.

"We have always been in touch with Dazhong. There may be a result fairly soon," GOME (0493.HK: Quote, Profile, Research, Stock Buzz) president Chen Xiao told Reuters on Thursday, commenting on a report in the Shanghai Securities News that his company had bid for Dazhong.

He declined to elaborate.

Suning 002024.SZ, China's second biggest electronics retailer, said on Thursday that it had abandoned its plan to acquire Dazhong because the companies disagreed on key issues.

It did not elaborate on why it terminated acquisition talks, which began in April, but the Shanghai Securities News quoted unnamed sources as saying the reason was a higher bid by GOME.

Suning said that after the failure of its acquisition talks, it would now grow mainly by expanding its own outlets.

Beijing-based Dazhong, which controls half of the electronics market in the city, has said it was in touch with several companies on possible mergers, including Best Buy (BBY.N: Quote, Profile, Research, Stock Buzz), the largest electronics retailer in the United States. (Reporting by Samuel Shen; Editing by Andrew Torchia)