Report: Citi Fails to Unload OneMain Unit

Citigroup (NYSE:C) has reportedly concluded talks to sell OneMain without finding a suitor for the consumer-lending business it has spent months trying to unload.

According to The Wall Street Journal, negotiations with private-equity firms Centerbridge Capital Partners and Leucadia National (NYSE:LUK) as well as Warren Buffett’s Berkshire Hathaway collapsed in part due to concerns over the economy and the turbulent credit markets.

Formerly known as CitiFinancial, OneMain, which offers mortgages, car loans and other loans to high-risk borrowers, relies on the securitization market that has been hit by the European sovereign debt crisis and economic jitters.

In July, the Journal reported Berkshire was teaming up with the private-equity firms to acquire OneMain, which had been expected to fetch more than $8 billion. Other interested parties in the past included a group led by private-equity giant Blackstone (NYSE:BX) and another consisting of Apollo Management and J.C. Flowers.

Citigroup, which placed OneMain in its noncore unit called Citi Holdings, may still attempt to sell the business once the markets calm down, the Journal reported.

Shares of Citi gained 0.60% to $28.67 Friday morning, adding to their 8% rally so far this week. Leucadia was recently up 0.17% to $24.09.