* KKR, TPG would split Morgan Stanley's 34.3 pct stake-WSJ
* Morgan Stanley would get more than $1 billion-WSJ
NEW YORK, Feb 22 - Morgan Stanley (MS.N) is nearing a deal to sell its stake in China International Capital Corp to Kohlberg Kravis Roberts & Co [KKR.UL] and TPG Capital [TPG.UL] for more than $1 billion, The Wall Street Journal reported, citing sources familiar with the situation.
Morgan Stanley has been exploring a sale of its 34.3 percent stake in CICC, one of China's leading investment banks. A sale would allow the New York bank to pursue other joint ventures.
Morgan Stanley, TPG, and KKR declined to comment on the Journal report. CICC could not immediately be reached for comment.
The proposed deal would split Morgan Stanley's stake in CICC evenly between KKR and TPG, the Journal said. The deal would require Chinese government approval and has not yet been signed, it said.
The newspaper also said KKR's Henry Kravis and TPG's David Bonderman, both founding partners of their firms, are likely to sit on CICC's expanded board.
Reuters reported earlier this month, based on sources, that KKR, TPG and Bain Capital were on the short list to submit final bids for Morgan Stanley's stake in CICC. One source told Reuters the deal could be worth up to $1.5 billion. (Reporting by Steve Eder and Megan Davies in New York, Mike Erman in Houston, and Michael Flaherty in Hong Kong; editing by John Wallace)