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US private equity firm Warburg Pincus is in advanced talks to take a major stake in Chinese furniture retailer Red Star Furniture Group, a source close to the deal said yesterday.

"The two parties have been in discussions for several months, and the stake Red Star would likely sell is less than 50 percent," the source said.

Privately owned Red Star, headquartered in Shanghai, operates 33 outlets, mostly in the coastal area of eastern China.

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