(Adds comments from Drillisch CEO, paragraphs 14-17)

FRANKFURT, March 26 (Reuters) - German mobile phone and Internet service provider Freenet AG (FNTG.DE: Quote, Profile, Research) said on Wednesday it is in talks with Debitel's private equity owner, Permira, to acquire the smaller rival in a deal that a German magazine said could be worth 1.4-1.5 billion euros ($2.2-$2.4 billion).

"Should these discussions be successful, Freenet would acquire the Debitel group with its existing bank debt and would grant the Debitel shareholders a 24.9 percent stake in Freenet," Freenet said in a statement.

The comment came after Manager Magazin said the mobile phone company was close to buying Debitel.

Freenet said it would pay a cash consideration that would be financed in whole or in part through a vendor loan.

It added that successful conclusion of the talks would depend upon agreement on several issues and need the approval of the board of the relevant entities, the German cartel office and also a deal with Debitel's bankers.

The German magazine said Freenet and Permira [PERM.UL] had in principle agreed on the deal, which would also allow Freenet to incorporate German mobile phone company Talkline. It wanted to buy Talkline last year from Denmark's TDC (TDC.CO: Quote, Profile, Research), but was trumped by a 560 million euro cash offer from Debitel.

Freenet shares closed up 2 percent at 10.46 euros.

Manager Magazin said Freenet plans to finance the Debitel acquisition by selling its DSL broadband business, in which competitors United Internet (UTDI.DE: Quote, Profile, Research) and Versatel (VTWGn.DE: Quote, Profile, Research) have expressed interest.