KKR & Co. Inc. (NYSE:KKR) could be contemplating a deal to sell only a stake of the $1 billion pub operator Australian Venue Co. Limited, according to sources.

Blackstone Inc. (NYSE:BX) has shown interest in the business, as has BGH Capital. But some suspect Australian Venue Co is too large for BGH, despite the nature of the company being suited to BGH, which owns cinema and theme park owner Village Roadshow. Blackstone would be unlikely to gain approval from regulators to buy the entire company, given that it owns Crown Resorts.

An option is that Blackstone acquires only parts of the business or only embarks on a funding deal for Australian Venue Co.