May 13 (Reuters) - Volkswagen is exploring

the sale of as much as

1 billion euros ($1.08 billion) worth of stock in its heavy

truckmaking arm Traton SE ( TRATF ), Bloomberg News reported on

Monday, citing people familiar with the matter.

The German automaker is talking to potential advisers

about the stake sale to institutional investors via an

accelerated bookbuilding deal as soon as the next few weeks, the

report added.

The potential 1 billion euros share sale represents a near

6% stake in Traton, according to market cap data from LSEG.

The size of the offering could be between 500 million euros

and 1 billion euros depending on market conditions, according to

the report.

Volkswagen and Traton did not immediately respond to Reuters

requests for comments.

The trucking sector is bracing for a bumpy year with

analysts flagging a lower demand in Europe and North America

after post-pandemic demand helped the industry last year.

Traton, which manufactures Scania, MAN, Navistar,

and Volkswagen trucks and buses, forecast a steady 2024 return

on sales after its core earnings in March almost doubled on

pent-up post-pandemic demand for commercial vehicles.

($1 = 0.9270 euros)