Feb. 25 (Bloomberg) -- Citigroup Inc. may sell Nikko Citigroup Ltd., its investment banking unit in Japan, the Mainichi newspaper reported, without saying where it obtained the information.

Citigroup is already in the process of selling its Nikko Cordial Securities Inc. unit, which specializes in services for individual investors, the report said, adding that the New York- based financial company may sell both businesses together.

Atsuko Yoshitsugu, a spokewoman at Citigroup in Tokyo, declined to comment.

Citigroup said on Jan. 30 that Nikko Cordial turned to a 13 billion yen deficit in the three months ended Dec. 31 from a 7.6 billion yen profit a year earlier. Nikko Citigroup posted a 4.3 billion yen loss, compared with a 4.5 billion yen shortfall a year earlier.

Chief Executive Officer Vikram Pandit included Tokyo-based Nikko Cordial in a list of businesses flagged for eventual sale under a reorganization plan announced Jan. 16.

To contact the reporter on this story: Tak Kumakura in Tokyo at mstkumakura@bloomberg.net

Last Updated: February 24, 2009 20:23 EST