Warburg, Apollo ready T-Mobile Netherlands bids -sources

* Warburg Pincus and Apollo only bidders left - sources

* To hand in final bids on Monday - sources

* Bids could value unit at more than 3 bln euros - sources (Adds valuation, Dutch market details)

By Arno Schuetze and Pamela Barbaglia

FRANKFURT/LONDON, Feb 11 (Reuters) - Deutsche Telekom (Xetra: 555750 - news) has narrowed the bidders for its T-Mobile Netherlands division to U.S (Other OTC: UBGXF - news) . private equity firms Warburg Pincus and Apollo, people familiar with the transaction said.

The two groups are expected to submit their final bids, which may value the unit at more than 3 billion euros ($3.4 billion), on Monday, the sources told Reuters.

Deutsche Telekom and Warburg declined to comment, while Apollo was not immediately available for comment.

The German telecoms group is considering exiting the Netherlands because it is a very competitive market where consumers are shifting to all-inclusive packages.

It may, however, opt to keep the business if it fails to get an acceptable price, one of the sources said.

John Malone's cable company Liberty Global (NasdaqGS: LBTYA - news) will not bid for Deutsche Telekom's Dutch unit as it is in talks with mobile phone networks operator Vodafone about forming a joint venture in the Netherlands, the sources said.

Other initial bidders such as buyout groups Apax and CVC (Taiwan OTC: 4744.TWO - news) have also dropped out, they added.

Deutsche Telekom is hoping get at least 3.6 billion euros or about 8 times the unit's expected earnings before interest, taxes, depreciation and amortisation (EBITDA) of 450 million euros, the sources said.

The buyout groups are likely to offer less than 7.5 times core earnings as margin pressure is unlikely to fade soon and growth prospects are limited, one of the sources said.

Peers such as KPN (Amsterdam: KPN.AS - news) , Telefonica Deutschland , Vodafone or Switzerland's Sunrise (Taiwan OTC: 2720.TWO - news) trade at 6.7 to 8.6 times their expected core earnings.

Warburg Pincus is working on the deal with Deutsche Telekom's former chief executive officer René Obermann, who is also a former chief executive of Dutch cable operator Ziggo (Other OTC: ZIGGF - news) and knows the Dutch market well.

T-Mobile Netherlands saw its EBITDA hit in 2015, with a 17 percent decline to 382 million euros in the first nine months.

If the slide continues at the same pace, its annual core earnings would fall from 630 million euros in 2014 to roughly 520 million euros in 2015, while a further slide to 450 million in 2016 is anticipated. ($1 = 0.8812 euros) (Additional reporting by Harro ten Wolde; Editing by Georgina Prodhan and Alexander Smith)