Zurich and Allianz in link with troubled property services group
Erinaceous, the troubled property services group, has put its insurance arm up for sale following a number of approaches from interested parties.
A report in the Sunday Telegraph said that the company, dogged by financial difficulties in 2007 that led to its share price falling by over 90 per cent, has instructed Deloitte to find possible buyers for the group.
Deloitte is believed to have contacted several insurers, including Zurich and Allianz, in recent weeks.
Interest from private equity is also likely, the report said. Last year, the company was linked with a number of suitors, including Towergate, Axa and property-guru Vincent Tchenguiz.
In July, HBOS tabled a £320m bid for the group, but later withdrew its interest.
Erinaceous said the latest announcement was part of an overall strategic review process during which all other alternatives, including a possible debt for equity conversion, were under consideration.
In 2006, the insurance arm of the business accounted for over a third of group's £41.2m profits.
Shares in the group are currently trading at 3.44p.
