By Chris Vellacott
LONDON Dec 12 UK insurer Legal & General
has hired Goldman Sachs to advise on a possible bid for
the general insurance arm of the Co-operative Group, a source
familiar with the process said.
The group, which has already sold its life insurance and
savings business, expects to sell its general insurance business
Legal & General, Goldman Sachs and the Co-op
declined to comment.
The Co-op group is battling a capital shortfall at its bank
and scandal over alleged drug-taking by its former chairman.
Earlier on Thursday it appointed ex-Treasury minister Paul
Myners to review its operations for a token one-pound salary.
L&G Chief Executive Nigel Wilson has pursued a strategy of
small, bolt-on acquisitions since the start of 2013 such as the
151 million pounds ($246.53 million) purchase of annuity firm
Lucida and its buyout of investment funds supermarket Cofunds.
The firm was also one of six British insurers pledging to
invest 25 billion pounds in transport and energy projects over
the next five years in support of government attempts to
encourage private sector investment in infrastructure.
The Co-op announced it planned to sell its general insurance
business in March.