Israel’s Lender Leumi Is Said to Weigh Sale of U.S. Bank Arm (1)

Bank Leumi Le-Israel BM, one of Israel’s largest lenders, is considering a sale of its U.S. bank arm, which could fetch about $1 billion, according to people familiar with the matter.

The Tel Aviv-based bank is working with a financial adviser to find buyers for Bank Leumi USA, said the people, who declined to be identified because the matter isn’t public. It also may consider an initial public offering for the unit, one of the people said.

The plans are at an early stage and Bank Leumi may opt to hold onto the business, they said.

The company ...