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UPDATE 1-Kone could team up to bid for Thyssenkrupp elevator business -sources


* Kone could sell assets to PE partner -source

* Bidders can express interest by mid-month -sources

* Thyssenkrupp shares jump 6.2% (Adds details from sources, share reaction)

FRANKFURT/DUESSELDORF, Germany, Sept 5 (Reuters) - Finland's Kone is considering teaming up with a private equity partner to pull off a bid for Thyssenkrupp's elevator business, three people familiar with the matter said.

Kone has long been interested in Elevator Technology (ET), by far Thyssenkrupp's most profitable division, and has been exploring options for a deal with the help of Bank of America , sources told Reuters in May.

The Finnish company could mitigate antitrust risks by potentially selling assets to the partner, one of the people said.

Kone declined to comment.

No final decision has been made and Kone could still decide to submit an offer on its own, the people said.

Thyssenkrupp has said that it could sell or list its elevator division, and analysts say Kone would be a good strategic fit for the unit.

Shares in Thyssenkrupp, which will be kicked out of Germany's benchmark index later this month following a sharp fall in the group's market value, extended gains and were up 6.2% at 1518 GMT on news Kone was considering a bid with a partner.

Due to its large overlap with ET, a bid by Kone is likely to raise antitrust issues and would require substantial remedies to get approval, the sources said, adding that teaming up with private equity players would be a way to sidestep concerns.

Sources told Reuters on Wednesday that KKR, CVC , Bain and EQT were among those who received a letter from Thyssenkrupp asking them to express their interest in ET by the middle of the month. (Reporting by Edward Taylor, Christoph Steitz, Tom Kaeckenhoff and Arno Schuetze; Editing by Riham Alkousaa and Susan Fenton)