Energy firm E.ON (EONGn.DE) is considering various options for its district heating division including a possible sale, Handelsblatt newspaper reported, citing sources close to the matter. The division, which incorporates small thermal power stations and 5,000 kilometres of pipes, is to be split off from the company into a separate entity, Handelsblatt said, adding that E.ON was seeking a minority investor. EON declined comment to Handelsblatt, and declined comment to Reuters about the report. Chief Executive Leonhard Birnbaum said in November the company planned to invest about 27 billion euros in its network and retail activities by 2026 and was targeting around 2-4 billion euros in proceeds from asset sales and partnerships. Birnbaum did not elaborate at the time on which assets the compny could sell. Reporting by Victoria Waldersee; Editing by Kirsten Donovan Our Standards: The Thomson Reuters Trust Principles.