UPDATE 1-Amtel, Sibur in talks on joint Russian tyre venture

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MOSCOW, Jan 31 (Reuters) - Russian-Dutch tyre manufacturer Amtel-Vredestein (AMVq.L: Quote, Profile, Research) said on Thursday it was in talks with petrochemical firm Sibur on creating a joint tyre venture, which could help Amtel resolve debt refinancing problems.

Amtel said it was in preliminary discussions with Sibur's tyre unit, Sibur-Russian Tyres, and that Sibur might become one of the principal shareholders in the future venture.

"As a result of such a business combination, Sibur may become one of the principal shareholders in the combined business through the issue of new equity," the company said in a statement.

Amtel said that Sibur and Alfa-Bank, one of Amtel's main shareholders, will provide a short-term financing facility to one of Amtel's units, which it did not name.

"There is no intention by Sibur and by any of the parties involved to make an offer to acquire Amtel-Vredestein N.V. existing share capital under the structure currently being discussed," it said.

The company, which posted a net loss of $33.5 million in the first half of 2007, has said it expected to continue to show losses on a consolidated basis due to negative contributions by its tyre retail business, AV-TO, and high interest expenses.

Amtel said earlier this week it was having difficulties in refinancing its short term debt due to debt market weakness and warned about potential supply disruptions.

The firm borrowed heavily in the past years to fund acquisitions, with the large part of the debt portfolio in roubles or euros. (Reporting by Tanya Mosolova; Editing by David Cowell)