Citi puts online banking unit up for auction
(5 August 2010−Britian) Citigroup is reportedly continuing its ongoing disposal of non-core assets, as it puts the group’s UK online banking unit Egg up for Auction.
Citigroup inherited two million customers when it acquired Egg from insurer Prudential for £575 million (A$998 million) in 2007.
While the bank has refused to comment directly on the sale of Egg, people close to the situation have said that Citigroup has been in talks with potential buyers for some time and is set to step up the process with an auction after the summer, the Financial Times reported.
Of the possible bidders Virgin has been ruled out, however Spanish power house Santander is rumoured to be interested as well as Tesco.
The person close to the deal also said that the online banking unit will go for around US$500 million floated.
While the bank has refused to comment directly on the sale of Egg, people close to the situation have said that Citigroup has been in talks with potential buyers for some time and is set to step up the process with an auction after the summer, the Financial Times reported.
Of the possible bidders Virgin has been ruled out, however Spanish power house Santander is rumoured to be interested as well as Tesco.
The person close to the deal also said that the online banking unit will go for around US$500 million floated.
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