Citigroup reported to be in talks to divest BPO arm Citigroup Global Services

Our Corporate Bureau
19 June 2007

On the heels of the private equity firm Blackstone acquiring the HDFC-Barclays' business process outsourcing firm Intelenet Global Services Ltd. for an undisclosed sum, Citigroup is reported to be keen on selling its BPO arm in India.

Reports say that Citigroup is in advanced talks with global private equity firms to sell an 80 per cent stake in Citigroup Global Services for $700-$750 million.

Morning business tabloid, Mint, quoted unidentified bankers saying that PR firm was most likely to emerge the buyer with IBM Corp. and that Tata Consultancy Services Ltd. were "likely to drop out of the race over terms being proposed by the seller".

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

The fast growth of the Indian BPO sector has been attracting private firms. For instance, PE firm Carlyle is reported to be negotiating to acquire a stake in BPO firm Cambridge Solutions Ltd.