Kazakh Alliance in talks with private equity fund

ALMATY Nov 10 (Reuters) - Kazakh bank Alliance ALLBq.L said on Tuesday an Arab private equity fund had expressed interest in buying a stake in the bank.

The government will hold a majority stake in Alliance after it completes a debt restructuring deal, and the bank has said earlier that the state would seek to sell it to a strategic investor.

"Talks are being held with a large Arab private equity fund," Alliance Chief Executive Maksat Kabashev told an online web conference. "They (the fund) have certain interest in purchasing the bank's shares."

Kabashev said the state was likely to sell its stake within two years.

Alliance went into default in April, citing fraud by former management and deteriorating asset quality. Last month, Kazakhstan put its majority shareholders on the wanted list, accusing them of stealing $112 million from the bank. (Writing by Olzhas Auyezov; Editing by David Cowell)