* GE hires JPMorgan to auction unit
* Unit could fetch about $2 billion

General Electric has put its security business up for sale in an auction that could fetch about $2 billion, sources familiar with the situation said on Wednesday.

The unit, which makes security cameras and alarms, could be sold in pieces if a buyer for the entire business fails to emerge, one source said.

We officially have no comment on rumors and have no announcements to make at this time, General Electric spokeswoman Michelle May told Reuters.

The potential sale of the unit was first reported by Bloomberg News. The report said possible acquirers included Tyco International Ltd (TYC.N) and United Technologies Corp (UTX.N).

(Reporting by Jessica Hall and James Kelleher; Editing by Phil Berlowitz) (For more M&A news and our DealZone blog, go to here)