March 26 (Reuters) - PAI Partners and Bain Capital are among the buyout firms

considering bidding for Swiss food giant Nestle's water business, which could be valued

at about 5 billion euros ($5.38 billion) or more in a deal, Bloomberg News reported on

Wednesday.

Clayton Dubilier & Rice and KKR have also been studying the business, Bloomberg News

said, citing people familiar with the matter.

Nestle may retain a stake in the unit in any transaction, the report added.

Bain Capital, Nestle, PAI Partners and CD&R declined to comment, while KKR did not

immediately respond to a request for comment on the report.

In November last year, the consumer product giant said it would carve out its 3.3 billion

Swiss franc water business into a standalone global unit starting January 1, 2025, and is open

to partnerships and deals.

Nestle's water business has had interest for decades, including from private equity and

strategic buyers, Sanjay Bahadur, head of group strategy and business development, told Reuters

last year.

The company also plans to boost advertising and marketing while reducing costs by at least

$2.8 billion by 2027. This comes as shoppers are shifting towards cheaper, better-advertised or

more innovative brands, eating into Nestle's market share.

Rival Unilever, which has also fielded criticism for having too many brands, announced in

March it planned to spin off its ice cream business and has signalled its willingness to sell

weaker brands.

($1 = 0.9301 euros)