Kimberley Diamond says in bid talks for the group

LONDON, July 18 (Reuters) Australia's Kimberley Diamond Co. said on Wednesday it is in talks over a potential takeover of the group after media reported that UK miner Gem Diamonds was preparing a bid.

Kimberley did not reveal the name of the suitor but said it was in discussions over a potential takeover at a price of 70 cents per share in cash.

The Australian Financial Review reported on Wednesday that Gem Diamonds is set to bid for Kimberley in a deal worth more than A5 million (7 million).

REUTERS DKS KP1735