Walgreen looking to sell PBM unit-report

* Walgreen looking to sell PBM business-Bloomberg

* Company has hired adviser to run an auction-Bloomberg

* Unit could fetch $500 mln-$1 bln-Bloomberg

* Shares close up 1 pct at $34.44

NEW YORK, Oct 25 (Reuters) - Walgreen Co WAG.N is looking to sell its pharmacy benefits management business and has hired an adviser to run an auction, Bloomberg reported on Monday, citing three people with knowledge of the matter.

A sale of the unit could fetch between $500 million and $1 billion, the report said, depending on what assets are included in the deal.

Walgreen, the largest U.S. drug-store chain, is being advised by Bank of America Corp, according to the report.

Bloomberg said its sources declined to be identified because the talks are private.

Walgreen received first-round bids for the business last week, Bloomberg said, citing two of the people.

Walgreen could not immediately be reached for comment.

The company’s shares closed up 1 percent at $34.44 on the New York Stock Exchange. (Reporting by Martinne Geller and Jon Lentz; Editing by Steve Orlofsky)