Nov. 18 (Bloomberg) -- OAO Seventh Continent's owner Alexander Zanadvorov may decide to sell the Russian food retailer to pay his $560 million loan taken from Deutsche Bank AG, Kommersant reported, citing an identified person at Deutsche and an investment banker.

Zanadvorov has applied to state development bank Vnesheconombank for funds to refinance the loan, and the bank may make a decision this week, the newspaper said, citing the banker.

Baring Vostok Capital Partners fund, which is part of ING Groep NV's private equity unit, and the U.S.'s TPG Capital investment company are interested in bidding for Seventh Continent, Kommersant said, citing an unidentified person at the chain and an executive at another Russian retailer. Sergei Abramov, managing partner at Baring Vostok, and Zanadvorov declined to comment to Kommersant. Officials at TPG Capital couldn't immediately comment, the newspaper said.

To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@bloomberg.net.

Last Updated: November 18, 2008 00:49 EST