By MADLEN READ

AP Business Writer

NEW YORK (AP) — Citigroup Inc. shares slipped again Tuesday after the bank confirmed it is in talks with Morgan Stanley about combining their brokerages.

No definitive agreement has been reached, and “no assurance can be given that any such agreement will be reached,” the bank said.

A person close to the negotiation said, however, that if discussions progress as they have been, there could be an announcement as early as late Tuesday or Wednesday. The person spoke on condition of anonymity because he was not authorized to discuss the ongoing talks.

Citigroup and Morgan Stanley plan to combine Citi’s brokerage, Smith Barney, with Morgan Stanley’s wealth management business. Morgan Stanley would pay Citigroup about $2 billion to $3 billion in cash for a 51 percent stake in the joint venture, the person said.

Shares of Citigroup fell 34 cents, or 6.1 percent, to $5.26 in early trading. Morgan Stanley shares fell 38 cents, or 2 percent, to $18.41.

Citigroup, which has lost more than $20 billion between October 2007 and October 2008, and is expected to post another loss for the final quarter of last year when it reports those results next week. The government has already lent the embattled bank $45 billion — more than other big banks have received — and agreed to absorb the losses on a huge pool of mortgages and other assets.