French minister: talks progressing over Germany buying 50% stake in KNDS from German owner families

PARIS, Oct 27 (Reuters) - French defence minister Catherine Vautrin said on Tuesday that talks were moving ahead regarding plans by the German government to buy a 50% stake in Franco-German tank maker KNDS from its German owner families.

"I believe that talks are progressing with a view towards a purchase by the German government," Vautrin told a parliamentary hearing.

KNDS CEO Jean-Paul Alary told Reuters on October 19 that he would prefer an initial public offeringas soon as market conditions allow, adding he welcomed the German government taking a stake in the company.

(Reporting by Florence Loeve;Editing by Sudip Kar-GUpta)