The Turun Sanomat daily said the offer waspreliminary, but a final agreement could be sealed later this month.

The government is not aware of any otherbids for the shipyard.

Turku is building a cruiseship for TUIof Germany for delivery in 2015.

The debt-ridden Korean firm has lost over$1bn on its loan-financed purchase of STX Europe, formerly Aker Yards, in 2008.

It has announced plans to shut one oftwo shipyards in Finland, Rauma, with the loss of 700 jobs, and consolidatework at the Turku yard.