Goldman Sachs has opened sales talks with Norsk Hydro for VAW, E.ON's German aluminium business, after a deal with CVC Capital Partners stalled over tax liabilities.

A spokesperson for Norsk Hydro, the Norwegian energy and light metals maker, said that the company was in the process of making due diligence enquiries that may lead to the acquisition of VAW. Enquiries are due to be completed during the first quarter next year. The spokesperson declined to comment on the amount Norsk was willing to pay.