Blackstone weighs $5 billion sale of Beacon Offshore, source says

Jan 20 (Reuters) - Blackstone BX.N is in talks to sell its Beacon Offshore Energy, which operates oil and gas assets in the U.S. Gulf of Mexico, for more than $5 billion, a source familiar with the matter said on Tuesday.

Earlier in the day, Bloomberg News reported that Blackstone has begun early discussions with investment banks about a potential initial public offering of the Houston-based company as soon as the first quarter.

The company is expected to attract interest from major Gulf of Mexico producers, the report said.