May 7 (Reuters) - Hedge fund Millennium Management is in

talks with Goldman Sachs' ( GS ) Petershill Partners ( PHLLF ) to identify

potential buyers for a minority stake in its management company,

the Financial Times reported on Wednesday.

Potential buyers could include some of Millennium's largest

investors, the FT reported, citing people familiar with the

matter. However, Millennium might ultimately decide not to work

with Petershill ( PHLLF ), the FT added.

In November, Reuters reported that BlackRock ( BLK ) was in

early-stage talks with Millennium Management about a strategic

tie-up that could involve acquiring a minority stake in the

hedge fund.

Petershill ( PHLLF ), which is operated by Goldman Sachs ( GS ), invests in

minority stakes in hedge funds and private equity firms.

Millennium Management, founded by Israel Englander, is one

of the world's largest hedge funds, with more than $73 billion

in assets under management.

Goldman Sachs ( GS ) declined to comment and Millennium did not

immediately respond to a Reuters request for comment.