Negotiations have been been under way for several months between Khazanah Nasional and India's Aditya Birla Group, which owns more than 98 percent of Idea, the Edge weekly said, quoting unnamed sources.
Birla, India's second largest conglomerate, this month said it would acquire the Indian Tata Group's 48.14 percent stake in Idea, bringing its holding to 98.3 percent in Idea.
Birla also said it would eventually reduce its shareholding to some 65 percent by placing out shares to financial investors, which the weekly said would benefit Khazanah.
"Birla would prefer not to sell to another (mobile) operator. Khazanah would be a good bet for Birla as it is a financial investor with government links," an industry analyst was quoted as saying.
Khazanah's bid would be Malaysia's second attempt at Idea Cellular. Telekom Malaysia, majority-owned by the government, tried to buy a stake in Idea last year but the deal fell through.
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