Citicorp Venture Capital, a unit of Citigroup, is to sell Walther Flender, a German engineering business, and has appointed Goldman Sachs to run the €1.3bn ($1.6bn) sale.

A source close to the sale said private equity firms are expected to show an interest in Flender, "but trade buyers should not be underestimated for this asset." He confirmed Goldman Sachs was handling the mandate.