PRESS DIGEST - Financial Times - Feb 25 =7

Paternoster is in talks with existing investors to raise up to 500 million pounds to double its investment war chest as it seeks to continue competing in the market for taking over defined-benefit pension schemes. The pension fund buy-out group is in discussions about supporting the new fund raising with investors including Eton Park, the New York hedge fund, and Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz). Paternoster has acquired 1.7 billion pounds worth of pension assets in the last 18 months and is yet to draw down all of the money available from its original 500 million pound fund-raising.

Prepared for Reuters by Durrants