BUZZ-Vodafone: Confirms in talks with Liberty Global

(Updates to reflect VOD share price turnaround)

** Mobile operator Vodafone's shares down nearly 2 pct after co confirms it is in talks with Liberty Global

** Co says talks do not extend beyond creation of a JV in the Netherlands

** "Today what you see is the market reaction of some of the bullish investors that were hopeful of a much bigger combination, but it doesn't prevent it from happening longer term," says Stephane Beyazian at Raymond James

** Bloomberg earlier on Tuesday reported talks, which were scrapped last year, restarted at the beginning of this year

Link: http://bloom.bg/1POTySM

** Shares (Berlin: DI6.BE - news) rose as much as 3.3 pct after report before falling

** Liberty Global (NasdaqGS: LBTYA - news) 's stock falls 0.5 pct in New York; Vodafone's Nasdaq (NasdaqGS: NDAQ - news) -listed shares fall 2.7 pct

** KPN (Amsterdam: KPN.AS - news) , Netherlands' largest mobile operator, down 1.9 pct

** Liberty Global was not immediately available to comment (venkateshasoumithri.mamidipudi.thomsonreuters.com@reuters.net, paul.sandle.thomsonreuters.com@reuters.net)