The private equity arm of Dubai Holding, which is owned by the emirate's ruler, is considering the sale of German packaging group Mauser, three sources aware of the matter said.

The deal is seen fetching between 1 billion euros ($1.4 billion) and 1.5 billion for the debt-laden firm, they added.

The private equity unit, Dubai International Capital (DIC), is planning to launch a formal sale process for Mauser by January 2014, two of the banking sources said, requesting anonymity as the sale plan is not public.

A third source said formal bids for the business were likely in the first quarter of 2014.

The sale is mainly seen attracting large private equity players, with few of them trying to pre-empt a formal process and seeking exclusive negotiations, though DIC is keen to engage in a competitive process for the asset, one of the sources said.

Reuters could not immediately reach DIC Chief Executive David Smoot for comment. Mauser was not available for comment.

Bank of America Merrill Lynch is assisting DIC in the sale, the three sources said. The U.S. bank declined to comment. – Reuters