Citigroup Plans to Sell UK Internet Bank Egg

Citigroup (C) intends to sell UK Internet bank Egg as part of a plan to dispose of peripheral assets.

Egg will likely fetch a price of about £500 million ($796 million), The Daily Telegraph reported without naming its sources. Citigroup bought Egg from UK insurer Prudential 2007 in a deal worth £575 million.

A spokesman for Egg declined to comment to The Daily Telegraph on a possible sale.

"Citi's strategy is to reduce the assets and businesses within Citi Holdings, its portfolio of non-core operating businesses and assets, in an economically rational manner while working to generate long-term profitability and growth from Citicorp, its core franchise," the spokesman said.

Potential buyers for Egg could include Spain's Santander and British retailer Tesco, The Daily Telegraph said.

Read Full Story