Citigroup Keen to Sell Stake in India BPO Arm: Paper

Citigroup is keen on selling 80% of its business process outsourcing (BPO) arm in India for $700-$750 million, the Mint said on Tuesday, on the heels of Blackstone's acquisition of a back-office firm.

Citigroup is in "advanced negotiations" with leading private equity firms for an all-cash deal for Citigroup Global Services, the newspaper said, citing investment bankers close to the deal.

A private equity investor was most likely to emerge as the buyer with IBM and Tata Consultancy Services "likely to drop out of the race over terms being proposed by the seller," the bankers told Mint.

Citigroup officials could not be reached immediately.

Citigroup Global Services operates primarily in financial services and employs about 8,000 people, its Web site showed.

Private equity heavyweight Blackstone said on Monday it had agreed to buy Indian back-office firm Intelenet Global Services for an undisclosed sum.

Private firms are eager to invest in back-office firms in India because of the potential for fast growth in the sector.

Carlyle, which has a 28% holding in Allsec Technologies, is reportedly bidding for another back-office firm, Cambridge Solutions.