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.