Report: Citi Nears Deal to Move OneMain

By Matt Egan Features FOXBusiness


Citigroup (C) has reportedly moved closer to unloading its OneMain consumer-financial services arm, entering into exclusive sales talks with a group of investors.

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According to The Wall Street Journal, Citi is negotiating exclusively with a team led by private-equity firm Centerbridge Capital Partners and Leucadia National (LUK).

Formerly known as CitiFinancial, OneMain, was rebranded by Citi last year amid a sales effort. The business, which has about $10 billion in assets and a book value of $2 billion, caters to low-income borrowers who need personal loans for things like making car repairs, paying medical bills or buying appliances.

Interested parties have reportedly included a group led by Blackstone (BX) and another consisting of Apollo Management and J.C. Flowers. However, they have raised concerns about OneMains ability to finance loans without Citis considerable balance sheet, the Journal reported.

New York-based Leucadia is an umbrella company that has investments in Jefferies (JEF), Aussie miner Fortescue Metals Group and casino owner Premier Entertainment Biloxi.

Shares of Citi gained 0.70% to $41.93 Friday morning, trimming their 2011 loss to 12%.