China Construction Bank (CCB) is keen to acquire a stake in Malaysian lender EON Capital Bhd , The Edge weekly newspaper reported on Saturday.

China's No.2 lender may seek Malaysian central bank approval to begin negotiations with EON Capital soon, said the report, citing an industry source.

It is possible that CCB will be given the nod to start negotiations with EONCap under a government-to-government initiative, the unnamed source said.

EON Capital is the subject of a takeover battle involving its largest shareholder, Hong Kong-based private equity fund Primus Pacific Partners, and other shareholders, over a plan by Hong Leong Bank to acquire the smaller lender.

Primus filed a lawsuit to stop Hong Leong Bank, Malaysia's sixth largest lender, from taking over EON Capital last year.

The case is ongoing.

The Edge report, which could not be immediately confirmed, said it is not known how big a stake CCB is seeking.