Frankfurt/Düsseldorf/Prague (Reuters) - According to insiders, the industrial group Thyssenkrupp is negotiating intensively about a partial sale of its steel division to the Czech billionaire Daniel Kretinsky.

The talks are at an advanced stage, two people familiar with the matter confirmed a preliminary report in the "Handelsblatt" newspaper on Thursday. Kretinsky and his holding company EPH are aiming for a stake of up to 50 percent, not control, one of the insiders told the news agency Reuters. According to the newspaper, the entrepreneur and Thyssenkrupp are each expected to hold a 50 percent stake in the steel division.

KRETINSKY NOT UNKNOWN IN GERMANY

The newspaper reported that Thyssenkrupp's management expects Kretinsky's investment to give it access to cheap electricity. Kretinsky controls the East German lignite power producers Mibrag and LEAG. He also has a stake in Metro through his holding company EPH.

According to insiders, Kretinsky has been in talks with Thyssenkrupp for some time about acquiring a stake in the steel subsidiary. The new Thyssenkrupp CEO Miguel Lopez is driving the negotiations forward, according to reports. His predecessor Martina Merz had already put the steel division with around 27,000 employees up for discussion. Employee representatives had also shown themselves to be open to talks with Kretinsky and his holding company EPH. "We have nothing against billionaires. If they invest the money in steel, we are happy," said Group Works Council Chairman Tekin Nasikkol at the beginning of the month. So far, however, nothing has been heard from this side. In principle, the company is open to talks. "We can certainly imagine remaining in the Group."

(Report by Jan Lopatka, Christoph Steitz, Tom Käckenhoff, edited by Birgit Mittwollen - If you have any queries, please contact the editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets)).