Malaysian automotive group DRB-Hicom has made a bid to buy more than half the government's stake in troubled national carmaker Proton, reports said Saturday.

DRB-Hicom's group executive advisor for auto operations, Abdul Rahman Omar, said the company is offering to buy a 32.9 percent stake to help revive the loss-making automaker and had met with the government on Monday over its bid.

"We could turn Proton into a profitable venture in two years. We are willing to work with any foreign partner that that the government selects," he was quoted as saying in the Star daily.

The government through various agencies owns 59 percent of Proton shares, including a 43 percent stake held by its investment arm, Khazanah Nasional.

It also holds a 39 percent stake in DRB-Hicom, and shares in the company's car dealership, Edaran Otomobil Nasional, according to reports.

If DRB-Hicom's bid is accepted, "the government still will own 26 percent of Proton, while maintaining its 39 percent stake in DRB-Hicom," Abdul Rahman was quoted as saying in the New Straits Times .

Partnership finalised next year

Besides DRB-Hicom, two other Malaysian companies have expressed an interest in a stake in Proton, while German automaker Volkswagen is also reportedly making a bid for a major share.

The government is also in talks with PSA Peugeot Citroen to discuss possible collaboration.

Prime Minister Abdullah Ahmad Badawi has said talks to finalise a partnership for Proton will be postponed until the first quarter of 2007.

Analysts say Proton needs to find a strong partner to help revive its fortunes after posting a quarterly loss of RM250.34 million (US$69 million) in its second quarter to September 2006, as sales dwindled.