* Radiant has 40,000-50,000 tons of aluminium stocks, source

says

* Stocks are spread across the globe, including Asia and

Europe

By Amy Lv and Tom Daly

SHANGHAI/LONDON, Aug 13 (Reuters) - STG, a trading company

funded by principals of the U.S. hedge fund Squarepoint, has

bought a large amount of aluminium from Radiant World as the

commodity trading house sells off inventory to raise cash, two

industry sources said.

Asked about the transaction, Radiant said it did not comment

on commercial matters. Squarepoint declined to comment.

Radiant, which is best known as an iron ore trader but also

deals in base metals, has come under intense scrutiny in recent

weeks because of concerns over the validity of invoices provided

to its banks.

Deutsche Bank and KBC Group NV have

frozen some of Radiant's Singapore bank accounts, while some

other lenders have suspended credit lines, Bloomberg News

reported last week. Radiant has declined to comment on any

discussions with specific lenders but says it conducts its

business to the highest commercial and legal standards.

The exact volume of aluminium sold by Radiant to STG and the

price at which the transaction was agreed were not known.

The sources said, however, that STG was buying a substantial

amount of the aluminium offered by Radiant.

One of the sources said Radiant's stocks were distributed

across multiple locations globally, including China and Europe.

A third source familiar with the matter estimated Radiant

had about 40,000-50,000 metric tons of aluminium in various

locations. The material is being held in private storage rather

than in exchange warehouses, the source said.

Such a stockpile would be worth between $130 million and

$165 million at current aluminium prices, although

sources expect Radiant would have had to sell the metal at a

discount.

A fourth source familiar with the matter said that in

addition to aluminium, Radiant was looking to offload 1,500 tons

of copper inventories.

Potential buyers are bidding aggressively for the material,

the fourth source added.

All the sources declined to be named because of the

sensitivity of the matter.