French company JCDecaux said today it is in exclusive talks to buy News Outdoor Group, the outdoor advertising operation owned by Rupert Murdoch that is currently embroiled in an investigation in Russia.

JC Decaux, the second largest outdoor advertising group in the world, said it had entered "exclusive discussions" with News Corp "regarding a potential transaction relating to News Outdoor Group".

According to reports in the Russian media, News Corp is seeking a deal worth up to $1bn (£569m).

"The proposed transaction would involve cash and shares and would result in a combination of certain of the assets of JC Decaux and NOG," the company said.

NOG has focused building its outdoor advertising operation in emerging markets across Europe and Asia.

The News Corp subsidiary has operations in Russia, Bulgaria, the Czech Republic, Israel, Poland, Romania and Ukraine; across south-east Asia it has businesses in Malaysia, Indonesia, Thailand and Vietnam.

On Tuesday, it emerged that investigators had raided the Moscow headquarters of NOG's Russian operation.

The investigation, carried out by the prosecutor general's office, followed the issue of a court order looking into negligence charges against a top official at the Moscow city government's advertising committee.

In June, NOR was accused of receiving illegal discounts on billboard advertising across Moscow from the advertising committee from 2002 to 2007.

Moscow's city government sought more than 200 million roubles (£4.4m) in damages, but its claim was rejected in court.

"The law enforcement officials who were carrying out the inspection did not lay any claims against News Outdoor and stated that the inspection was a part of activities related to the investigation of a criminal case against the first deputy chairman of the Moscow committee for advertising and information," said the company in a statement.

"There is no case of any kind initiated against News Outdoor that would be the reason for the inspection," NOG added.

The company said that operating in a "completely legal and transparent" manner had always been the top priority of the management and shareholders.

· To contact the MediaGuardian news desk email editor@mediatheguardian.com or phone 020 7239 9857. For all other inquiries please call the main Guardian switchboard on 020 7278 2332.

· If you are writing a comment for publication, please mark clearly "for publication".