AUSTRALIA’S COLONIAL CONFIRMS THAT UK OPERATIONS MAY BE SOLD

Australian insurance and financial services group Colonial confirmed today that it is seeking a buyer for its UK insurance, pensions and lending business. The company insisted that discussions were at a “very exploratory stage”, but added that it had been approached by a number of potential buyers in recent months “as part of the sector-wide consolidation in the financial services industry”. The sale of the UK business had been widely predicted in the media over the past two days, with analysts suggesting that the operation could be worth A$800m. However, Colonial rejected newspaper reports that it was negotiating with UK-based insurance and estate agency group Countrywide Assured as “a preferred bidder”. Countrywide reported that it was among the firms talking to Colonial.