Tyson Foods in talks to buy Keystone from Brazil's Marfrig: source

SAO PAULO (Reuters) - Tyson Foods Inc. TSN.N is in exclusive talks with Brazil's Marfrig Global Foods MRFG3.SA to buy Keystone Foods, a U.S. supplier of chicken to McDonald's MCD.N, one source with knowledge of the matter said on Friday.

Marfrig, which acquired Keystone eight years ago for $1.26 billion, expects to sell the unit for more than double that - a price of up to $3 billion. Among the groups interested in Keystone were Cargill Inc CARG.UL and Cofco Corp CNCOF.UL, Reuters has reported. Bloomberg reported earlier on Friday that Tyson entered into exclusive talks for the deal.

Marfrig declined to comment and Tyson did not immediately comment.

Reporting by Tatiana Bautzer in Sao Paulo and Siddarth Cavale in Bangalore; Editing by Susan Thomas