UPDATE 1-Egypt's Pioneers eyes stake in Beltone

By Sherine El Madany

CAIRO, Nov 4 (Reuters) - Egypt's Pioneers Holding (PIOH.CA: Quote) is in talks to buy a stake in investment bank Beltone Financial, the stock exchange said on Wednesday.

Pioneers confirmed the statement issued by the exchange but declined to give details of the deal when contacted by Reuters.

"Pioneers Holding said there was contact between the company and Beltone for acquiring a percentage of the capital (of Beltone)," the exchange statement said, adding that the firms had not reached an agreement.

Beltone declined to comment immediately but said a statement regarding the talks would be issued early next week.

Pioneers, which specialises in brokerage services, also offers market research and investment banking for retail and institutional clients.

The firm was ranked second by value of executed trades in Egypt in the third quarter of this year, according to stock exchange data. Beltone was ranked sixth.

Pioneers, which was listed on the Egyptian stock market in June, saw its shares jump 9 percent to close at 6.96 Egyptian pounds ($1.27) on Wednesday.

The firm operates in Egypt, Saudi Arabia, the United Arab Emirates, Bahrain and Syria, and has a total market capitalisation of $583 million.