City watchdog launches probe into Connaught - FT

LONDON, July 26 (Reuters) - The Financial Services Authority has launched a wide-ranging probe into social housing services company Connaught Plc CNT.L, over several issues including a failure to provide potentially price-sensitive market data, the Financial Times reported on Tuesday.

Connaught provides maintenance services for public-funded housing, an area vulnerable to Downing Street's swingeing public sector cuts. Last month, local governments deferred some of their contracts with the company. The company has requested an urgent cash injection.

Citing people familiar with the matter, the newspaper said the City watchdog will open several lines of inquiry - including whether Connaught has failed to provide markets with potentially price-sensitive information in a timely manner.

The company's bankers - a syndicate led by the Royal Bank of Scotland - is expected to decide within the next few days whether or not to provide the additional funds that Connaught has requested, the newspaper said.

It said a debt-for-equity swap is one of the options under consideration.

The company could not immediately be reached for comment.

(Reporting by Karolina Tagaris; editing by Sofina Mirza-Reid) ((karolina.tagaris@thomsonreuters.com; +44 207 542 4878))