The consortium led by Citigroup's investment arm, Citicorp Ventures, may buy out the Tata group's stake in Tata Infomedia.
It has the support of the existing management of the company and has already put in a proposal to take a controlling stake in it. KPMG is understood to be the adviser for the consortium on this deal.
The Citicorp Ventures-led consortium includes a couple of other players. According to sources, the consortium sought the support of the management early this month. "It has got the support," sources said.
A Tata group spokesperson said the group did not wish to comment on the issue. Citigroup officials were not available for comment.
The others in the race are Business India promoter Ashok Advani, the Living Media Group and ICICI Ventures.
ICICI Ventures has also made a bid, but according to sources it did not seek the support of the management.
Six months ago, the Living Media Group had signed an agreement with Titan Industries to buy out its 80 per cent stake in Reader's Digest.
Tata Infomedia and some other group companies hold a 20 per cent stake in Reader's Digest which Living Media wants to buy out.
The Tata group's exit from Reader's Digest is in line with its decision to stick to its core businesses. But sources said the transaction had not been completed as yet.
Tata Infomedia, India's largest commercial printing company, is also into publishing of specialised magazines, business directories such as Tata Yellow Pages, children's books and into direct marketing.
The company also recently entered into film production with the Amitabh Bachchan starrer Aitbar.
Tata Sons currently holds a 30 per cent stake in Tata Infomedia. The other Tata group companies to hold stakes in the company are Tata Steel (4.7 per cent), Tata Power ( 6.4 per cent), Telco (2.3 per cent) and Tata Investment (1.3 per cent).
