RPT-Czechs say close to settlement with Nomura

(Repeats story published late on Tuesday)

BRUSSELS/PRAGUE, Nov 28 (Reuters) - The Czech Republic is close to reaching a settlement with Japan's Nomura Holdings in the case of failed Czech bank IPB, Finance Minister Vlastimil Tlusty said on Tuesday.

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 since locked in a lengthy legal battle over compensation, but a new right-wing government opened fresh talks with Nomura in September aimed at ending the dispute.

"I'm doing my best to be successful ... We hope that on Thursday we will sign," Tlusty told reporters after a monthly meeting of European Union finance ministers in Brussels.

The talks also include CSOB, and there may be an agreement involving all three parties.

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.

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.

A source close to the talks said Tlusty may be too optimistic about the deal being signed so soon.

"I think this is pressure on both counterparties to move in some direction," the source said on the condition of anonymity.

"However, it is quite possible some agreement will be found (later)," he said. ((Reporting by David Milliken and 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/