FRANKFURT, Nov 18 (Reuters) - DaimlerChrysler is poised to sell its MTU aero engines unit to U.S-based private equity firm Kohlberg Kravis Roberts & Co (KKR) for about 1.5 billion euros, sources close to the deal said on Tuesday. "Daimler has agreed to sell MTU to KKR for about 1.5 billion euros ($1.8 billion)," a company source told Reuters.
However, another source said talks were going down to the wire and that Doughty Hanson, the rival buyout firm bidding for MTU, could still be in with a chance.
"They're close to signing off on it...they're still in negotiations," a source close to the situation said.
The latest development in the months-long sale follows a Reuters report on Monday in which sources said KKR was the frontrunner in the deal and that a decision was expected by the end of the month.
One source said on Tuesday that an announcement could come as soon as the end of the week. DaimlerChrysler said the company had not reached a final decision on the sale. MTU declined to comment.