Anil Ambani group eyeing SpiceJet - report

MUMBAI (Reuters) - India's Anil Dhirubhai Ambani group (ADAG) has begun talks to buy low-cost carrier SpiceJet, the Mint daily reported on Friday, without attributing any source.

Kingfisher Airlines and Jet Airways Ltd are also in the race to buy SpiceJet, which is looking to raise funds, the newspaper said.

The diversified ADAG controls India's No. 2 mobile operator Reliance Communications Ltd, which is in talks with South Africa's MTN in a bid to create a global top-10 telecoms firm.

"I am not meeting anybody and not thinking about diluting my stake," the Mint quoted SpiceJet's founder Bhupendra Kansagra as saying. "But who would not want to exit, if he is getting a right price for his stake." Officials at ADAG and SpiceJet could not be immediately reached.

The Tata group owns 6 percent and Dubai government investment agency Istithmar owns 13.4 percent of SpiceJet.

The Indian airline industry, estimated to have made losses of at least $1 billion in 2007/08, has resorted to stake sale and raised debt to stay afloat.

Last year Jet Airways bought unlisted rival Sahara Airlines and UB group, which runs Kingfisher Airlines, bought a controlling stake in Deccan Aviation Ltd.

(Reporting by Narayanan Somasundaram and Rakesh Sharma)