HONG KONG, Jan 15 (Reuters) - U.S.-based infrastructure

investment firm I Squared Capital is weighing an offer for Hong

Kong-listed broadband operator HKBN ( HKBNF ) that could value

it at up to $1 billion, two people with knowledge of the deal

said.

I Squared Capital's offer is set to trump an earlier bid by

China Mobile that offered HK$5.23 per share, said the

sources, adding, however, that the firm is not keen to pay more

than HK$6 apiece.

The potential higher offer adds competitive tension to the

prolonged buyout process of HKBN ( HKBNF ), as rival China Mobile, the

world's largest wireless carrier by subscribers, seeks to extend

footprint outside mainland China.

I Squared is looking to present its offer by the end of this

month, but the timing is still fluid, said one of the sources

and two other people with knowledge of the situation, who all

declined to be named as the information was confidential.

I Squared is considering including a non-cash component in

its offer structure, said one of the four sources.

Miami, Florida-headquartered I Squared Capital declined to

comment. HKBN ( HKBNF ) did not immediately respond to Reuters request for

comment.

State-owned China Mobile made its offer in early December

that would value HKBN ( HKBNF ) at HK$6.86 billion ($882 million), after

showing interest nearly two years ago.

With more than $40 billion in assets under management, I

Squared also discussed a potential buyout with HKBN ( HKBNF ) in 2023

which did not yield any result.

HKBN ( HKBNF ) shares closed at HK$5.25 on Tuesday, giving it a market

cap of $883 million. The company has lost 65% of its market

value since April 2020 when its share price was at the highest

over the last five years.

Founded in 1999, HKBN ( HKBNF ) provides internet, data centre and

WiFi services, among others.

In 2018, it announced a $1.34 billion acquisition of

fixed-line operator WTT.

WTT's private equity shareholders MBK Partners and TPG

became HKBN's ( HKBNF ) shareholders after the transaction.

These two investors are seeking to exit the company in the

potential buyout, said separate people with knowledge of the

situation.

MBK and TPG declined to comment.