SINGAPORE'S Neptune Orient Lines , the world's eighth-biggest container shipping firm, is in talks with banks to take up a US$5-7 billion (S$6.8-9.8 billion) syndicated loan, sources familiar with the situation said.

Talks for a loan come as TUI Chief Executive Michael Frenzel is touring Asia to market his company's container shipping business Hapag-Lloyd, which the German group has put up for sale and NOL is considered a likely bidder.

A spokesman for NOL declined to comment. The shipping firm is in talks with Singapore's three local banks DBS Group , Oversea-Chinese Banking Corp and United Overseas Bank as well as with some foreign banks for the loan, a source close to the situation told Reuters.

A second banker said that 'NOL is exploring this.'

'Yes, there have been informal talks,' he said. 'The sum is northwards of US$5 billion. The range is US$5-7 billion.'

The banks expect to receive a formal proposal for the loan this week, he said. -- REUTERS