ICBC talks on bank share buy still alive - BBL

BANGKOK, March 27 (Reuters) - Bangkok Bank BBL.BK, Thailand's biggest lender, said on Thursday it was still negotiating with China's ICBC (1398.HK: Quote, Profile, Research, Stock Buzz) (601398.SS: Quote, Profile, Research, Stock Buzz)about the sale of its 19.3 percent stake in ACL Bank ACL.BK.

"As far as I know, ICBC has been serious on the deal. If there is any update, we should be informed. We haven't heard anything from ICBC yet," bank executive vice president Kulathida Sivayathorn told Reuters.

She spoke amid market concerns that the deal might not go through after global credit worries prompted ICBC to review all its overseas investment proposals and cut most "unnecessary" types of deals to retain profit growth.

The Chinese government was insisting any major foreign investment by state entities got cabinet approval before making a a final deal, according to sources with direct knowledge of the situation.

If the ACL deal were dead, it would be further proof that Chinese banks were becoming more cautious about overseas investments, which would disappoint investors, analysts said.

ICBC has been interested in buying a 30.6 percent stake in ACL from the Thai Finance Ministry, ACL's biggest shareholder, and the Bangkok Bank shares since late 2007.

At 0300 GMT, shares in Bangkok Bank were down 0.7 percent at 134 baht, while the main Thai index .SETI was down 0.13 percent. ($1=31.50 Baht) (Reporting by Arada Therdthammakun; Editing by Michael Battye)