Friends reportedly to start F&C demerger

Sat Oct 25, 2008 1:46am BST

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LONDON (Reuters) - Insurer Friends Provident (FP.L) is to start a demerger of its controlling interest in fund manager F&C, the Financial Times reported on Saturday.

The newspaper, quoting people familiar with the situation, said the group would next week kick off the process of distributing its shares in F&C to Friends' investors.

But it will also continue talks with potential buyers for its 53 percent stake.

The people familiar with the situation said talks to sell the Friends' stake in F&C were continuing, while adding that a demerger would be complex and take time.

Friends is looking to sell F&C and its high-end insurer Lombard but Chief Executive Trevor Matthews has said he will sell only if he can get a good price.

(Reporting by Kate Holton; Editing by Gary Hill)

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