UPDATE 3-Barrick ends talks to sell African unit to Chinese buyer

Tue Jan 8, 2013 11:00am EST
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* China Natl no longer in talks to buy African Barrick stake

* Barrick Gold says approach "prudent and disciplined"

* Says will only look at deals generating acceptable value

* African Barrick shares slump 19 pct

* CEO says Q4 results will be "reasonably positive" (Adds background, Toronto share price)

By Sarah Young

LONDON, Jan 8 (Reuters) - Barrick Gold Corp has ended talks on selling a stake in majority-owned African Barrick Gold to a Chinese buyer, dashing hopes of a potential $3 billion deal for the underperforming unit.

Canadian mining major Barrick Gold, which owns 74 percent of London-listed African Barrick, had said in August it was in early-stage talks with state-owned China National Gold about the possible sale of all or part of its stake.

Shares in African Barrick slumped around 19 percent to 359 pence in afternoon trading, hitting their lowest level for five months, on disappointment that the Chinese would no longer be offering an exit from a stock which has frequently traded well below its 575p listing price set in March 2010.   Continued...