UPDATE 2-Metro confirms talks to sell Kaufhof department stores
* Talks with Canada's HBC continuing - sources
* HBC has made no formal offer yet - sources
* Austria's Rene Benko made fresh offer - source
* Handelsblatt says Benko offers 2.9 bln euros
* Metro shares up 0.9 pct (Recasts with Metro comment, adds analyst)
By Matthias Inverardi
DUESSELDORF, Germany, May 20 (Reuters) - German retailer Metro confirmed on Wednesday that it was in talks over the sale of its department store chain Kaufhof.
A Metro spokesman said the group had not reached any decisions yet and repeated a long-standing position that conditions for a sale were appropriate price, a convincing concept for the future of the chain, and solid financing.
Sources told Reuters earlier on Wednesday that the bidding for Kaufhof is heating up, with the owner of rival Karstadt making a new takeover offer and talks with Canadian retailer Hudson's Bay continuing. Continued...