Update 1-NTT to buy Dimension Data for $3.4 bln-Nikkei

* NTT to launch $3.4 bln tender offer for all shares - Nikkei
* NTT declines to comment
* NTT shares down 1.2 pct vs Nikkei average down 1.1 pct

(Adds details, company comment)

Japan's Nippon Telegraph and Telephone Corp (NTT) (9432.T: Quote) is in the final stages of buying South African IT firm Dimension Data (DDTJ.J: Quote) (DDT.L: Quote) for 300 billion yen ($3.4 billion), the Nikkei business daily reported on Thursday citing company sources.

The Japanese telecoms giant plans to launch a tender offer for all outstanding shares in Dimension Data, the paper said.

NTT appears to have raised nearly 300 billion yen to finance the deal, and the South African firm seems receptive to the offer, the Nikkei said.

A NTT spokeswoman declined to comment on the report.

Shares of NTT dropped 1.2 percent to 3,720 yen while the Nikkei average was down 1.1 percent at 9,687. (Reporting by Nobuhiro Kubo and Yumiko Nishitani; Editing by Charlotte Cooper)

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