Citigroup Set to Put Online Bank on Auction Block (C)

Citigroup C is set to put its British online bank, Egg, up for auction as part of a plan to dispose of billions of dollars in unwanted assets, the Financial Times said on Wednesday. Citing people close to the situation, the newspaper said Citigroup had been holding informal talks with potential buyers over Egg for some time and it was now preparing to start an auction for the business, most likely after the summer months. Reuters notes that "The bank declined to comment on the report, but said in an emailed statement that its strategy to reduce assets within its non-core Citi Holdings portfolio -- which includes Egg -- was public knowledge." Egg, which Prudential PRU created before selling it to Citigroup for 575 million pounds, could attract interest from UK and international groups, including Santander and Tesco's bank, according to some analysts. Shares of Citigroup are down slightly today, to $4.12.