Deutsche Telekom, Centerbridge eye betting group Tipico - sources

FRANKFURT, April 12 (Reuters) - Buyout group Centerbridge has tied up with Deutsche Telekom (LSE: 0MPH.L - news) to bid for Tipico as an auction of Germany's largest private sports betting group nears the end, two people familiar with the matter said.

According to the sources, the German telecoms bellwether aims to take a minority stake in privately-held Tipico as it seeks to expand revenue streams outside its traditional business, while Centerbridge would buy the majority.

The planned offer may value Tipico at about 1 billion euros ($1.1 billion), or roughly 9 times its expected core earnings, in line with the valuation of listed peers like GVC, one of the people said.

Buyout groups CVC (Taiwan OTC: 4744.TWO - news) and XIO as well as Czech lottery firm Sazka are also expected to hand in an offer by a deadline next week, the sources said.

Tipico and its owners as well as the potential bidders declined to comment, except for XIO, which was not immediately available for comment.

($1 = 0.8760 euros) (Reporting by Arno Schuetze; Additional reporting by Harro Ten Wolde and Jan Lopatka; Editing by Maria Sheahan)