Egg looks fragile as Citi begins sell-off

Citi's decision to offload its profitable retail business in Germany could mark the start of a major re-alignment for the US bank's vast overseas network.

Citi has announced plans to shed $400 billion of non-core assets over the next three years in an effort to rebuild profitability and shrug off recent losses.

The German retail operation was the centrepiece of Citi's business in Europe, and its divestment bodes ill for the bank's other retail outlets on the Continent.

UK Internet bank Egg - acquired by Citi in January 2007 - may have no costly branches to maintain, but its business model appears increasingly out-of-step with Citi's stated aim of redirecting capital to core businesses and emerging growth markets.

But in the current climate, who would want to buy it?