Babcock & Brown: in talks with potential partners

MELBOURNE, Oct 23 (Reuters) - Babcock & Brown Ltd (BNB.AX) has received expressions of interest from a number of parties on a potential strategic relationship, the troubled Australian investment bank said on Thursday.

The bank said it had started a process to review the proposals, confirming a report in the Australian Financial Review business daily.

"The process is at a preliminary stage and there is no certainty that any agreement will eventuate," Babcock said in a statement.

Babcock & Brown and its satellite funds have been shrinking and their shares have been in freefall as the group's model of borrowing heavily to buy assets and then selling them into investment funds has come under stress in the global credit crunch.

Babcock & Brown's shares last traded at A$1.40, down 94 percent so far this year, or three times the fall in the broader market. ($1=A$1.49) (Reporting by Sonali Paul)