Royal Bank of Scotland
The Sunday Times said the high salaries earned by bankers in corporate broking arm Hoare Govett and other parts of the equities division could mean that closing it could cost tens of millions of pounds.
As a result, RBS could offer to pay one of its rivals to take the loss-making business off its hands, the paper said.
It said an announcement on the future of the bank's equities arm, which includes its Hoare Govett corporate finance brand, could come as early as this week.
RBS has hired investment bank Lazard
Bank of China <601988.SS> and Japan's Mizuho Financial <8411.T> are among the banks eyeing parts of RBS, sources told Reuters on Friday.
RBS, 83 percent owned by the British government after a bailout during the 2008 credit crisis, is expected to scale back in equities -- potentially selling the UK advisory and broking business Hoare Govett.
On Sunday, a spokesman for British drugmaker GlaxoSmithKline
A report on RBS in the Sunday Telegraph said the bank's Global Banking and Markets division, which houses the investment banking activities, was expected to be merged with the safer Global Transaction Services as part of the overhaul.
A spokesman from RBS declined to comment on the reports.
(Reporting by Kate Holton and Ben Hirschler. Editing by Jane Merriman)