OLD MUTUAL PONDERING SALE OF NEDCOR STAKE, SAYS PAPER

London-listed South African bancassurance group Old Mutual has approached a number of leading international banks to sell its majority holding in locally based banking group Nedcor, The Business newspaper has reported. According to the paper, the move is likely to trigger a full bid worth up to £2bn for Nedcor. Potential bidders for the holding include UK-based Asia-focused bank Standard Chartered Bank and HSBC. Two weeks ago Old Mutual injected £180m into the ailing Nedcor to meet its minimum capital requirements, following big write-downs at the bank against corporate investments. Old Mutual has a 53% holding in Nedcor, which is listed on the Johannesburg stockmarket and capitalised at about £1.7bn.