ISTANBUL, Feb 24 (Reuters) - Turkish retailer Tesco Kipa said on Monday that its British parent Tesco Plc was in the first stages of talks with various companies regarding various options.
Shares in Kipa jumped 9.3 percent to 4.23 lira in early trade in Istanbul, outperforming the main share index which was just slightly up.
The Financial Times had reported on Friday that Tesco, under pressure to turn around declining sales in its domestic market, was considering reducing its exposure to Turkey.
"Tesco Plc is in the first stages of talks with various companies regarding various options," Tesco Kipa said in a statement to the Istanbul stock exchange.
The Financial Times had cited people familiar with the situation as saying Tesco, the world's third-largest retailer, was looking at combining its operations in Turkey with the country's biggest food retailer Migros.
Migros is owned by private equity firm BC Partners.
"As a private equity company, BC Partners periodically evaluates various alternatives for all its existing investments including Migros as part of the normal flow of its activities," Migros said in a statement to the Istanbul bourse on Monday.
Tesco is almost two years into a 1 billion pound ($1.6 billion) turnaround plan in Britain, where it generates two-thirds of its revenues but has been losing ground after focusing investment on overseas expansion.