GE's Australia sale deadline extended: source

SYDNEY (Reuters) - General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) has extended the deadline for bids for its Australian mortgage business, worth a potential A$200 million ($171 million), a source with direct knowledge of the matter told Reuters on Wednesday.

Indicative bids for Wizard Home Loans were initially due in mid-August, but the source said two more sale documents were distributed after some potential suitors revived their interest in the deal.

"We are still expecting a few people to come back yet," said the source, who declined to be identified as the process was confidential.

"Some people have called up and said they would now like to be in the process," the source said.

Local banks including National Australia Bank Ltd (NAB.AX: Quote, Profile, Research, Stock Buzz) and foreign lenders such as Spain's Banco Santander (SAN.MC: Quote, Profile, Research, Stock Buzz) are seen as possible bidders, according to industry sources.

A GE Money spokesman was not available for comment.

In May, GE said it was considering strategic options for Wizard, a non-bank lender owned by GE's financial services arm, GE Money. Local media have said GE Money paid about A$500 million to buy the business from its founder Mark Bouris in 2004.

Wizard, with some 250 branches across Australia, has suffered like other non-bank lenders due to rising credit costs sparked by the global credit crisis.

The sale, being managed by JP Morgan and Citigroup, is seen challenging due to difficult market conditions. Some potential buyers, such as Australian and New Zealand Banking Group Ltd (ANZ.AX: Quote, Profile, Research, Stock Buzz) and NAB are themselves grappling with higher bad debt charges due to their exposure to U.S. subprime mortgages.

Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research, Stock Buzz) has already said it is not interested in the business.

($1=A$1.17)

(Reporting by Denny Thomas; Editing by James Thornhill)