UPDATE 2-Sabadell talking to possible insurance partners

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By Robert Hetz

SANTANDER, Spain, June 19 (Reuters) - Spain's Banco Sabadell (SABE.MC: Quote, Profile, Research, Stock Buzz) is in talks with international insurers about the sale of a stake in its insurance business, the bank's chairman said on Thursday.

"There have been a lot of companies interested. We're talking to a number of them at this time .... Our new partner will be international and one of the world's leading insurance companies," Sabadell's Josep Oliu said at a conference in northern Spain.

He added that the sale was not guaranteed.

On Wednesday, Spanish insurer Mapfre (MAP.MC: Quote, Profile, Research, Stock Buzz) said it was not interested in Sabadell's insurance business.

Sabadell said in May it was considering selling a stake in its insurance business.

A banking source familiar with the situation said the Catalan bank had given a mandate to Deutsche Bank to sell up to 50 percent plus one share of its insurance arm, in a deal valued at between 1 billion and 1.25 billion euros ($1.56-1.95 billion) net.

Sabadell's insurance unit managed a total of 6.64 billion euros in assets at end 2007, including life and non-life insurance policies and pension funds.