Citigroup Inc is considering selling its Japanese investment banking unit, Nikko Citigroup, in addition to the brokerage unit that has already been put up for sale, the Mainichi newspaper reported.
Earlier this month Citigroup formally began the process of selling the brokerage unit, Nikko Cordial Securities, as part of its efforts to shed non-core assets globally and survive the deepening financial crisis.
Citigroup, which originally did not plan to part with Nikko Citigroup, is considering selling it and Nikko Cordial as a set to maximise the sale price, the Mainichi reported on its website without citing sources.
A spokeswoman for Citigroup in Japan declined to comment.
Citigroup is concerned that selling Nikko Cordial on its own would lead to a drop in corporate value as it would not allow the buyer to fully benefit from cooperation between the brokerage and investment banking operations, the Mainichi said.
Japan's top three banks, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group have all shown interest in buying Nikko Cordial, sources have told Reuters.
The report comes as Citigroup talks with federal regulators on a plan for the government to increase its stake in the third-biggest U.S. bank in terms of assets, a person familiar with the matter has told Reuters.
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