News: SUN UPDATE 1-Australia's ANZ offers to buy Suncorp Bank for $3.4 bln-media

(Recasts headline and lead paragraph with reported buyout offer and price)

SYDNEY, July 17 (Reuters) - Australia and New Zealand Banking Group (ANZ) has offered to buy insurer Suncorp Group's (SUN) banking unit for around A$5 billion ($3.40 billion), in what could be Australia's biggest banking deal in more than a decade, local media reported.

ANZ and Suncorp were locked in late-stage talks on the weekend, with the deal for Suncorp Bank expected to be announced on Monday morning, the Australian Financial Review (AFR) said in a report on Sunday, citing sources involved in the talks.

A Suncorp spokesperson said the company does not comment on market speculation. ANZ did not immediately respond to a request seeking comment outside of normal business hours.

The ANZ offer values Suncorp's banking unit at a premium to its listed rivals on a price-to-book value basis, the AFR report said.

The report comes just days after ANZ revealed it was in talks with private equity firm KKR & Co KKR.N to buy software company MYOB Group, in a deal that local media pegged at over A$4.5 billion ($3.06 billion).

ANZ, the fourth-largest lender in Australia, may seek an equity raising of A$3.5 billion to buy Suncorp's banking operations and has put its plan to buy MYOB on hold, the Australian newspaper said on Sunday.

KKR did not immediately respond to a request for comment outside of normal business hours.

Last month, Suncorp, Australia's second-largest insurer by market value, said it was conducting a strategic review of its banking operations to focus on its top-revenue generating insurance business.

Suncorp's banking and wealth unit contributed 40% of the insurer's total profit in fiscal 2021, and had loans worth A$58.39 billion as at Dec. 31, 2021, mostly comprising home loans. ($1 = 1.4723 Australian dollars)