UPDATE 1-Israel's CopperGate in advanced talks to be sold

(Releads with statement from investor Tamir Fishman)

TEL AVIV, Oct 12 (Reuters) - Israeli home networking chip firm CopperGate Communications is in advanced negotiations to be acquired, one of its investors said on Monday.

"A binding agreement has not yet been signed and the company will make an announcement as required by law," Tamir Fishman Venture Capital II Ltd TFVC.TA said in a brief statement to the Tel Aviv Stock Exchange.

Business newspaper Calcalist reported that Sigma Designs Inc SIGM.O is expected to announce on Monday the acquisition of CopperGate for $200 million in cash and shares.

CopperGate develops chipsets for multimedia home networking using existing wiring. Sigma makes chips for the IPTV set-top box market and Blu-ray players.

Tamir Fishman owns 31 percent of CopperGate, while Carmel Ventures owns 27 percent and Motorola Inc MOT.N holds 9 percent.

CopperGate had raised $25 million from its investors, Calcalist said.

CopperGate officials were not immediately available for comment. (Reporting by Tova Cohen; Editing by David Holmes)