SAO PAULO - Citigroup Inc is considering listing its Brazilian or Latin American units to raise cash for expansion, Valor Economico newspaper said on Friday.

The report, citing unidentified people with direct knowledge of the situation, said the move might allow Citigroup to regain momentum in Brazil, where its limited muscle has delayed expansion.

Gustavo Marin, the executive in charge of running the Brazilian unit, and Manuel Medina-Mora, Mexico City-based head of Latin American operations for Citigroup, favor offering shares, the Brazil-based newspaper said.

While analysts and bankers consulted by Valor said a Brazilian listing of the local unit would not be attractive enough, they said an offering encompassing Citigroup's Latin American business, such as Mexican giant Banamex, would be well received by investors.

Citigroup declined to comment on market speculation, the paper said.

Messages sent by Reuters to a New York-based Citigroup spokeswoman were not immediately returned. Press officials for the bank's Brazilian unit could not be reached immediately. (Reporting by Guillermo Parra-Bernal; editing by John Wallace)

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