Europe's fourth-biggest retailer, Metro, is considering floating a 25 percent stake in its Cash & Carry Russia unit in the spring, three sources familiar with the deal said on Wednesday.
The initial public offering could value the unit at no less than 4 billion euros ($5.4 billion), one of the sources said.
It will be competing for investors' attention with local rival Lenta, which is also planning to float in London early next year. Lenta is controlled by state bank VTB and private equity fund TPG.
The Metro listing would take place in London, with a secondary listing possibly in Moscow, another of the sources said. The sources said the listing could take place in the spring or the second quarter of 2014.
Metro declined to comment.