Hapag-Lloyd received indications of interest: TUI CEO

HANOVER, Germany (Reuters) - TUI AG (TUIGn.DE: Quote, Profile, Research)(TT.L: Quote, Profile, Research) has received indications of interest for its Hapag-Lloyd shipping unit, the world's fifth-biggest, Chief Executive Michael Frenzel said on Wednesday at the group's annual meeting.

"There are some buyers in the market who have signaled their preparedness to us," Frenzel said. "We want to reach an optimum price."

He added that TUI is on track to start contacting possible buyers for Hapag-Lloyd in late May or early June.

Media reports have recently speculated that TUI has already been in talks to merge Hapag-Lloyd with Singapore's Neptune Orient Lines (NEPS.SI: Quote, Profile, Research) and may receive as much as $7 billion.

Frenzel did not elaborate on who is interested.

He said he expects TUI to post higher earnings from shipping this year compared with 2007 as freight rates rise.

(Reporting by Rajiv Sekhri, editing by Will Waterman)