UPDATE 1-Napster considers a possible sale

(Adds Napster considering sales, previous dateline New York)

By Alex Dobuzinskis

LOS ANGELES, Aug 29 (Reuters) - Napster Inc NAPS.O said on Friday the online music service's board was willing to consider a sale of the company and had hired UBS Investment Bank to consider options.

UBS has been "actively advising the company with respect to possible strategic alternatives," the board directors said in a letter to shareholders.

The board also urged shareholders to reject three dissident board candidates in favor of reelecting three existing directors.

They said the dissident group implied the company's board is "not willing to consider a sale of the company."

"This is not true," the directors said in the letter.

The original Napster was a music file-sharing site known for piracy which closed down in the midst of legal problems. A Los Angeles, California-based company then acquired the Napster name and now sells music subscriptions. The company plans to hold an annual meeting on September 18. (Additional reporting by Sinead Carew, editing by Peter Henderson; editing by Gunna Dickson)