After deciding against a market debut in New York, Blackstone Group LP, CVC Capital Partners Ltd. and Kirkbi A/S, owners of Merlin Entertainments Group Ltd., decided to take the theme park business public in London's stock market next year, sources with knowledge of the deal said.

The private-equity firms plans to proceed with a market debut in London after talks with Merlin's executives, the sources said. The private-equity firms, which each having about a third of the Poole, England-based company, hired Citigroup Inc., Barclays Plc ,  Morgan Stanley & Co., and Goldman Sachs Group Inc. as underwriters for the offering, the sources added.

Merlin, which operate the London Eye and Madame Tussauds, could have the initial public offering in the first quarter of 2014 in an sale that may value the company at more than GBP3 billion (US$4.5 billion), the sources said,  requesting not to be identified because the discussions are private.

Representatives for each of the identified underwriters Citigroup, Barclays,  Morgan Stanley, Goldman Sachs Group declined to comment.