11/08/2005 KUALA LUMPUR, Malaysia (AP) - U.S. commodity trading giantCargill is in talks to buy a Malaysian-based palm oil refinery for about250 million ringgit, or $65.7 million, a newspaper reported Wednesday.

Cargill already owns two refineries in Malaysia and opened talks to buyIntercontinental Specialty Fats Sdn. Bhd., nine months ago, the NewStraits Times said, quoting unidentified sources.

Cargill or Intercontinental officials were not immediately available toconfirm the report.

The Times said the Minneapolis-based company aims to strengthen itsposition in financial and commodity markets by buying Intercontinental,which is 88 percent owned by Singaporean investors and based in the PortKlang, near Kuala Lumpur.

Intercontinental was formerly known as Lam Soon Edible Oils Sdn. Bhd. andis one of the world's leading producers of premium grade specialty foodfats and oils, which are used to make chocolates and ice cream.

Besides its refinery business, the company also has interest in thebakery, snacks and ice cream industries.