UPDATE 5-HSBC in talks for 70 pct of S.Africa's Nedbank

Mon Aug 23, 2010 5:02pm GMT

* Old Mutual, HSBC in exclusive talks on Nedbank stake

* HSBC could buy up to 70 pct of Nedbank for over $8 bln

* Deal would give HSBC better foothold in Africa

* S.Africa Treasury: Nedbank already foreign owned

* Nedbank, Old Mutual shares climb; HSBC steady

(Adds comment from South Africa Treasury, bank regulator)

By David Dolan and Kelvin Soh

JOHANNESBURG/HONG KONG, Aug 23 (Reuters) - HSBC (HSBA.L: Quote) (0005.HK: Quote) is in talks to buy up to 70 percent of South Africa's Nedbank (NEDJ.J: Quote) in a potential $8-billion-plus deal that would give Europe's biggest lender a broader gateway to the fast-growing African continent.

HSBC and Anglo-South African insurer Old Mutual (OML.L: Quote) (OMLJ.J: Quote), which owns a 52 percent stake in Nedbank, said in separate statements on Monday they were in exclusive talks.   Continued...

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