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 aims to reach a deal as early 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 International and

Cinven - the owners of TK Elevator - have been working on a

planned IPO, but recent volatility in equity markets has made a

sale more appealing.

Cinven, Advent, Kone, and TK Elevator declined to comment

when contacted by Reuters.

Reuters reported last year that TK Elevator's owners were

weighing the United States as a location for a potential IPO.

Sources had said the business would likely be valued at more

than 20 billion euros.

($1 = 0.8700 euros)