UPDATE 1-Czechs close to settlement with Nomura - report

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PRAGUE, Nov 28 (Reuters) - The Czech Republic is close to reaching a settlement with Japan's Nomura Holdings <8604.T> in the case of failed Czech bank IPB, news agency CTK quoted Finance Minister Vlastimil Tlusty as telling Czech Television.

IPB was co-owned by a special-purpose vehicle affiliated with Nomura, but after its collapse in 2000 IPB was taken over by the state and sold to CSOB, a unit of Belgium's KBC <KBKBt.BR>, for 1 crown in a deal involving state guarantees.

The Czech government and Nomura have been locked in a lengthy legal battle over compensation since IPB's collapse, but a new right-wing government opened fresh talks with Nomura in September aimed at ending the dispute.

The Czech Republic lost an international arbitration case with Nomura in March, and also an appeal against that decision filed with a Swiss court. Nomura is seeking 40 billion Czech crowns ($1.87 billion) in that suit. No compensation has so far been awarded in that case.

The Czech Republic has launched a counter-suit against Nomura, demanding up to 120 billion crowns in a separate arbitration case.

CTK said a settlement may be signed on Thursday.

Tlusty could not immediately be reached for comment. A finance ministry spokesman said he had no new information on the case. A Nomura spokesman for the Czech Republic said Nomura had no comment on the matter. ((Reporting by Jan Lopatka, editing by Will Waterman; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474)) ($1=21.34 Czech Crown)

Keywords: CZECH NOMURA/