Malaysia's Felda considers buying controlling Eagle High stake

(Corrects Eagle High's Reuters Instrument Code in first paragraph to BWPT.JK from BWPT.KL)

* Looking to divest Canada downstream ops -CEO

* Shares up 3.0 pct in afternoon trade

By Al-Zaquan Amer Hamzah and Emily Chow

KUALA LUMPUR, June 16 (Reuters) - Malaysia's Felda Global Ventures Holdings Bhd would consider taking control of Indonesia's PT Eagle High Plantations Tbk after first buying 37 percent for $680 million, Chief Executive Mohd Emir Mavani Abdullah said on Tuesday.

The world's third-largest palm plantation operator plans to pay for 30 percent in cash and to issue new shares for the other 7 percent. The two firms previously said the deal would combine Felda's downstream capabilities with Eagle High's land bank and reduce operating costs.

"This is something we are thinking about at the moment... a majority controlling stake," Mohd Emir told reporters after Felda's annual general meeting.

Felda announced its buying intention on Friday, after which analysts said the proposed price was too high. On Monday, a Malaysian opposition lawmaker urged it to drop the plan after Felda's shares fell 11 percent to a record low.

Felda stock recovered somewhat on Tuesday, trading 3.0 percent higher at 1.70 ringgit a share at 0830 GMT, versus a 0.2 percent rise in the benchmark stock index.

Mohd Emir also said Felda - which counts Malaysia's state pension fund and Pilgrim Fund as major shareholders - hopes to sell its Canadian downstream operations in the next one to two months.

"We have got some bidders; I can't disclose who they are," he said. "It is in the interest of Felda Global to divest all non-performing and non-care assets." (Writing by Yantoultra Ngui; Editing by Alan Raybould and Christopher Cushing)