The potential buyer is hoping to clinch a deal with KraussMaffei's owner, Canada's Onex Corp (>> ONEX Corporation), before the Chinese New Year in early February, the people said on Thursday.

They added that the deal may still fall apart or that counterbids may surface that may appeal to Onex.

Onex declined to comment.

(Additional reporting by Denny Thomas in Hong Kong; Editing by Harro ten Wolde)

By Arno Schuetze