Nintendo in Talks With Microsoft over Rare, Banjo-Kazooie?

Paint this one with a huge "probably not," folks, because it seems a little too good to be true. I've heard a rumour from more than a few people this morning that Nintendo is in talks with Microsoft, and has been for a quite a while, over the acquisition of the Banjo Kazooie brand and of Rare, the developers who originally made the series. Doesn't that sounds a little too much like exactly what Nintendo fans have been asking for for years?

The original source of the rumours, Zelda Informer, says that the news was delivered by an anonymous tipster. They go on to explain that Retro Studios have been working on a Banjo game for quite a while now, and that the main reason Nintendo plan to rebuy Rare is mainly to do with the copyright they own.

It's within the realms of possibility and it would certainly be a nice move by Nintendo (although, how financially smart it would be is questionable). Is it happening though? Would Microsoft really let go one of their most popular studios? There are just too many red flags  over this whole story.