TOKYO, Jan 7 (Reuters) - U.S. private equity fund KKR

is considering selling supermarket chain Seiyu in a deal

that could worth several hundred billion yen (several billion

dollars), the Nikkei business daily reported on Tuesday.

The bidding process for the sale of shares has begun, and

major retailers including Aeon, Don Quijote owner Pan

Pacific International Holdings ( DQJCF ) and Trial Holdings

, as well as an investment fund or funds have submitted

bids, Nikkei said without citing sources.

KKR owns 85% of Seiyu and Walmart ( WMT ) the remaining 15%.

The Nikkei said Walmart's ( WMT ) stake was also likely to be sold, and

that the final buyer would be decided by around February, the

newspaper reported.

KKR declined to comment.