RPT-UPDATE 1-E.ON set to sell its German power grid -sources

(Repeats with new Reuters story code)

* E.ON talks to TenneT, group of financial investors-sources

* Group has Deutsche Bank, Goldman Sachs, Allianz-sources

* E.ON may sell German power grid as early as Monday-source

* Bids value grid at about 1 bln eur-sources

* Shares drop as much as 1.4 percent

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By Peter Dinkloh and Tom Kaeckenhoff

FRANKFURT, Nov 6 (Reuters) - Germany's E.ON AG (EONGn.DE), the world's largest utility, is set to sell its German long-distance power grid, four people with knowledge of the matter said, ending years of wrangling with the European Commission.