Beijing, Nov. 3 (PTI): Baotou Iron & Steel of China is in talks with Arcelor Mittal, the world's top steelmaker, over the possible sale of a 49 per cent stake, the official media reported today.

No other details were provided by the China Daily report. In December last year, Mittal Steel had confirmed that it was in talks with Baotou.

Prior to Mittal Steel's acquisition of Arcelor, the latter had signed an agreement with Chinese producer Laiwu Steel Group that will allow the European company to hold a 38.41 per cent stake in Laiwu Steel Corporation.

Last year, Mittal acquired a 36.67 per cent share in Valin Steel Tube & Wire in central China's Hunan province.

Meanwhile, Baotou Steel Union in north China's inner Mongolia autonomous region, a subsidiary of Baotou Iron & Steel group, plans to pay about 6.97 billion yuan ($882 million) to buy assets from its controlling shareholder to expand, the report said.

The listed steelmaker will offer 3.03 billion new yuan-denominated shares to Baotou Iron & Steel group at 2.3 yuan (29 cents) each, the company said yesterday in a statement.

The acquisition will mean that almost the entire group is publicly traded, making it easier for Baotou Steel Union to take over or merge with rivals.