Analysts and business columnists have speculated recently that leading businessmen in Mexico could be planning to buy Banamex as Citigroup tries to shed assets.

Telecommunications entrepreneur Carlos Slim, the world's second wealthiest man, was widely seen as a potential buyer, but his spokesman told Reuters on Friday that he was not in talks to acquire the bank.

Citigroup is shifting businesses outside of its main retail and commercial banking operations into a "bad bank" known as "Citi Holdings." Citi Holdings will stay on the company's balance sheet, but over time Citi will look to sell or wind down many of those businesses.

Banamex, the second largest bank in Mexico, will reside in Citi's "good bank," known as Citicorp. Banamex has both commercial and retail banking operations. Citi declined to comment.

Citigroup's acquisition of Banamex for $12.5 billion in 2001 was the largest ever in Mexico at the time and was part of a wave of foreign purchases after an economic crisis devastated the bank sector in the mid-1990s.

Mexico's banking industry is dominated by Spain's BBVA and Banco Santander SA , as well as HSBC Holdings Plc , Canada's Scotiabank and locally controlled Banorte .

Banks in Mexico have weathered the world financial crisis relatively well because they have not dabbled in risky businesses such as subprime lending. But consumer credit losses in Mexico have been ticking higher as the global economy slows.

(Reporting by Dan Wilchins in New York and Noel Randewich in Mexico City; Editing by Andre Grenon)