March 16 (Reuters) - Finnish lift maker Kone Oyj ( KNYJF )

is in talks to buy TK Elevator, which has been

preparing for an initial public offering, Bloomberg News

reported on Monday, citing people familiar with the matter.

TK Elevator's owners have been seeking a valuation of as

much as 25 billion euros ($28.74 billion) including debt in any

transaction, the report added.

Kone and TK Elevator did not immediately respond to Reuters

requests for comment.

Kone aims to reach a deal as soon as the coming weeks, the

report said, adding that TK Elevator's owners are continuing

work on a potential listing alongside negotiations about a

sale.

According to the Bloomberg report, Advent and Cinven, the

owners of TK Elevator have been working on a planned IPO, but

recent volatility in equity markets has made the owners more

open to a potential sale instead.

Cinven declined to comment on the report, while Advent

International did not immediately respond to Reuters request.

Reuters reported last year that TK Elevator's owners were

weighing the United States as a location for a potential initial

public offering. Sources had told Reuters at the time that the

business would likely be valued at more than 20 billion euros.

($1 = 0.8700 euros)