Amcor still in talks to buy Rio assets-sources

SYDNEY, July 6 (Reuters) - Australian packaging group Amcor Ltd (AMC.AX) was still in talks with Rio Tinto Ltd (RIO.AX) on buying some of the miner's packaging business, two sources briefed on the matter told Reuters on Monday.

Earlier on Monday Rio said it had agreed to sell another part of the business to Bemis Co Inc (BMS.N) for $1.2 billion [ID:nSYD463954]. The sources declined to be identified as the discussions were confidential.

An Amcor spokesman declined to comment. Rio said earlier that it intends to sell the rest of the business.

The sources declined to say whether Amcor was in exclusive talks.

The sale of rest of the business could potentially fetch in excess of $2 billion, applying a similar valuation to that paid by Bemis, Citigroup said in a note to clients on Monday. ($1=A$1.26) (Reporting by Denny Thomas) ((denny.thomas@reuters.com; +61 2 9373 1812; Reuters Messaging: denny.thomas.reuters.com@reuters.net)) ((If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com))