Nov 2 (Reuters) - U.S. investment group KKR is

in talks with the UK's Thames Water and its advisers about

participating in a 3 billion pounds ($3.88 billion) share sale

which forms part of a wider recapitalisation plan, Sky News

reported on Saturday.

KKR is among a small number of investors studying Thames

Water's finances with a view to supporting a rescue share sale

for Britain's largest water company, the report said, citing

people familiar with the matter.

($1 = 0.7736 pounds)