National City, which has been battered by the housing downturn, is considering a plan to sell itself to rival KeyCorp, the Wall Street Journal reported on Wednesday, citing sources familiar with the matter.
If the transaction is to occur, the combined company would receive a capital infusion from private equity firm Kohlberg Kravis Roberts & Co, sources told the newspaper.
On Tuesday the U.S. regional bank said its board is reviewing a range of strategic alternatives and that it had hired Goldman Sachs as its advisor.
Representatives of National City, KeyCorp, or KKR could not immediately be reached for comment.