ALIBABA -TENCENT- ALERTS

LONDON : Chinese conglomerate Alibaba and Tencent are involved in talks to buy a minority stake in advertising giant WPP's Chinese unit, Sky News reported on Saturday, citing unidentified resources.

Sky News said the firms, along with China Media Capital Holdings [CMC], were in early stage discussions about buying roughly 20 percent of WPP China in a deal that would value the business between $2 billion and $2.5 billion.

A spokesman for WPP declined to comment.

WPP, the world's biggest advertising group, is in the midst of a leadership change.

Founder Martin Sorrell left in April following a complaint of personal misconduct. Executive Chairman Roberto Quarta said last month that the search for Sorell's replacement was well advanced .

The China deal, which could take several months to conclude, would see WPP pool its Chinese agency operations into a new holding company and retain majority ownership and control, Sky News said. [Reuters]