TAIPEI (Dow Jones) -- In one of the largest private-equity deals to take place in Asia, bidding for Taiwan's largest cable television operator China Network Systems Co. is coming in between US$2.0 billion and US$2.5 billion, two people familiar with the matter said Thursday.

The strong interest in CNS, which is being sold by controlling shareholder MBK Partners and is one of several Taiwan media companies on the auction block at present, is partly due to Taiwan's relatively easy credit environment, as well as global private-equity firms and local investors' return to shopping mode amid an improvement in the regional economy this year.

Due diligence in the second round of bidding for the Taiwan cable and broadband company has begun, after the first round concluded last week, one of the people said.

It is unclear how many bidders are involved in the second round of the bidding process. But Australia's Macquarie Group Ltd. (MQBKY) and Bain Capital LLC are among short-listed bidders, the people said.

Another bidder in the current round of bidding is European private-equity firm Permira, one of the people said.

Morgan Stanley is MBK's adviser on the deal.

The CNS transaction, which is poised to be the largest private-equity deal in Asia so far this year, according to data provider Dealogic, is expected to be concluded by the end of September, one of the people said. It would also be one of Asia's largest private-equity deals, eclipsing Kohlberg Kravis Roberts & Co. and Affinity Equity Partners' US$1.8 billion acquisition of Oriental Brewery Co. in South Korea last year.

MBK Partners, an Asia-focused private-equity firm, bought a 60% stake in CNS in July 2007 for $1.4 billion-$1.5 billion.

CNS couldn't be immediately reached for comment.

A spokesman for Permira declined to comment. Bain Capital also couldn't be immediately reached for comment.

MBK is one of the largest independent private-equity firms in the Asia-Pacific region with over $3.7 billion in capital under management, according to information on its website. It has offices in Hong Kong, Seoul, Shanghai and Tokyo.

Market observers said interest in Taiwan media companies heated up this year partly because the island's cable TV industry is entering a phase of consolidation, and exposure to Taiwan's media sector--and the potential to influence public opinion on the island--is an unspoken but prized attribute for companies aiming to expand in China.

The Tsai family, the controlling shareholder of Fubon Financial Holding Co. (2881.TW) and Taiwan Mobile Co. (3045.TW), for example, is in talks with Carlyle Group LP to buy its Taiwan cable TV unit Kbro Co., Fubon Chairman Daniel Tsai said last month.

The local Economic Daily News cited unnamed sources as saying the Tsai family set up a private firm and signed an agreement to buy Kbro from Carlyle for NT$65 billion.

Vivek Couto of Media Partners Asia Ltd., a pan-Asia media consultancy, said while Taiwan's analogue TV market is saturated, the digital TV market is still growing fast.

"People are interested in cable distribution in Taiwan because you've got broadband, that's a growing business," said Couto. "And in the long term, once you further consolidate, there's significant synergy that can be realized.

"Broadband (TV)'s market share has grown from 3%-4% a few years ago to 16%-17% currently and probably is going to go to over 30% in the next five years," he said.

Meanwhile, MBK Partners is also in the market to sell 70%-held Gala Television Corp., the Taipei-based media firm that provides cable TV content in Taiwan and runs a few channels and produces video programs.

So-net Entertainment Corp. (3789.TO), an affiliate of Sony Corp. (SNE) is among the three-to-five bidders for Gala Television, a person familiar with the matter said Thursday, declining to be named.

Other bidders include international private-equity firms and Taiwanese investors, the person said, adding the deal for Gala Television should be finalized by the end of August. Barclays Capital is advising MBK Partners on the deal.

The person declined to give the size of the bids but Taiwan's Commercial Times on Thursday reported that So-net's proposed price for its purchase is around NT$6 billion.

MBK Partners invested in Gala Television in late 2008.

K.C. Kung, an MBK partner, is overseeing both the CNS and Gala Television deals.

Joe Tsai, Gala TV's media contact, confirmed the company is for sale but declined to comment further. A spokeswoman for Sony Corp. in Japan declined to comment on the matter.TAIPEI (Dow Jones)--In one of the largest private-equity deals to take place in Asia, bidding for Taiwan's largest cable television operator China Network Systems Co. is coming in between US$2.0 billion and US$2.5 billion, two people familiar with the matter said Thursday.

The strong interest in CNS, which is being sold by controlling shareholder MBK Partners and is one of several Taiwan media companies on the auction block at present, is partly due to Taiwan's relatively easy credit environment, as well as global private-equity firms and local investors' return to shopping mode amid an improvement in the regional economy this year.

Due diligence in the second round of bidding for the Taiwan cable and broadband company has begun, after the first round concluded last week, one of the people said.

It is unclear how many bidders are involved in the second round of the bidding process. But Australia's Macquarie Group Ltd. (MQBKY) and Bain Capital LLC are among short-listed bidders, the people said.

Another bidder in the current round of bidding is European private-equity firm Permira, one of the people said.

Morgan Stanley is MBK's adviser on the deal.

The CNS transaction, which is poised to be the largest private-equity deal in Asia so far this year, according to data provider Dealogic, is expected to be concluded by the end of September, one of the people said. It would also be one of Asia's largest private-equity deals, eclipsing Kohlberg Kravis Roberts & Co. and Affinity Equity Partners' US$1.8 billion acquisition of Oriental Brewery Co. in South Korea last year.

MBK Partners, an Asia-focused private-equity firm, bought a 60% stake in CNS in July 2007 for $1.4 billion-$1.5 billion.

CNS couldn't be immediately reached for comment.

A spokesman for Permira declined to comment. Bain Capital also couldn't be immediately reached for comment.

MBK is one of the largest independent private-equity firms in the Asia-Pacific region with over $3.7 billion in capital under management, according to information on its website. It has offices in Hong Kong, Seoul, Shanghai and Tokyo.

Market observers said interest in Taiwan media companies heated up this year partly because the island's cable TV industry is entering a phase of consolidation, and exposure to Taiwan's media sector--and the potential to influence public opinion on the island--is an unspoken but prized attribute for companies aiming to expand in China.

The Tsai family, the controlling shareholder of Fubon Financial Holding Co. (2881.TW) and Taiwan Mobile Co. (3045.TW), for example, is in talks with Carlyle Group LP to buy its Taiwan cable TV unit Kbro Co., Fubon Chairman Daniel Tsai said last month.

The local Economic Daily News cited unnamed sources as saying the Tsai family set up a private firm and signed an agreement to buy Kbro from Carlyle for NT$65 billion.

Vivek Couto of Media Partners Asia Ltd., a pan-Asia media consultancy, said while Taiwan's analogue TV market is saturated, the digital TV market is still growing fast.

"People are interested in cable distribution in Taiwan because you've got broadband, that's a growing business," said Couto. "And in the long term, once you further consolidate, there's significant synergy that can be realized.

"Broadband (TV)'s market share has grown from 3%-4% a few years ago to 16%-17% currently and probably is going to go to over 30% in the next five years," he said.

Meanwhile, MBK Partners is also in the market to sell 70%-held Gala Television Corp., the Taipei-based media firm that provides cable TV content in Taiwan and runs a few channels and produces video programs.

So-net Entertainment Corp. (3789.TO), an affiliate of Sony Corp. (SNE) is among the three-to-five bidders for Gala Television, a person familiar with the matter said Thursday, declining to be named.

Other bidders include international private-equity firms and Taiwanese investors, the person said, adding the deal for Gala Television should be finalized by the end of August. Barclays Capital is advising MBK Partners on the deal.

The person declined to give the size of the bids but Taiwan's Commercial Times on Thursday reported that So-net's proposed price for its purchase is around NT$6 billion.

MBK Partners invested in Gala Television in late 2008.

K.C. Kung, an MBK partner, is overseeing both the CNS and Gala Television deals.

Joe Tsai, Gala TV's media contact, confirmed the company is for sale but declined to comment further. A spokeswoman for Sony Corp. in Japan declined to comment on the matter.