Report: Citi Nears Deal to Move OneMain

By FOXBusiness

Citigroup (NYSE: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 (NYSE: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 (NYSE: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 (NYSE: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%.