(AFP) The Netherlands' Schipol group has confirmed its interest in acquiring a stake in Malaysia Airports Holdings, a report said today.

"We can confirm our interest in Malaysia Airports and that we are in contact with Malaysia Airports," Schiphol corporate communications manager Marianne de Bie told the Business Times .

"During negotiations we will however not disclose any information about the content of the talks."

Malaysia Airports, which operates the country's airports including Kuala Lumpur international airport (KLIA), last month said it had held talks with a number of airport operators, including the Schiphol Group which operates Armsterdam airport.

But no deal has been reached so far, it said.

The newspaper earlier reported that the government would sell a 30 percent stake in Malaysia Airports to a foreign partner to make the country a regional aviation hub.

Withdrawal

But a Malaysia Airports official was quoted as saying that the company has not finalised the size of stake which it would sell.

Malaysia Airports shares were traded higher today against a weak broader market following Schiphol's confirmation that it was interested in acquiring a stake, dealers said.

An aviation analyst with a local brokerage said Schipol's confirmation was "another strong lead" and had attracted speculative buying although there was still no conclusion to the talks.

He said Schiphol's participation would boost Malaysia Airports, given its experience and strong financial position.

Other analysts have said it would boost efforts to turn KLIA into a regional hub after it was hit by the withdrawal of five airlines since it opened in June 1998.

The government in April announced major cuts in airport charges to increase business at KLIA.

Passenger flights would be exempted from landing and parking charges for a year.