COLONIAL REMAINS SILENT ON POSSIBLE UK SALE TO WINTERTHUR

Australian insurance and banking group Colonial has confirmed that it is still negotiating the sale of its UK-based life assurance operation — but has refused to comment on a report that talks are under way with Switzerland’s Winterthur insurance group. Winterthur, a unit of the Crédit Suisse Group, was said by the UK’s Sunday Telegraph newspaper to have offered up to £300m for Colonial’s life assurance business, which was reported to have an embedded value of A$860m. The newspaper said that the Crédit Suisse board was expected to approve the deal later this month. Colonial noted that talks were continuing, but refused to name any of the companies involved. The group, which is itself set to be taken over by Commonwealth Bank of Australia, said that the newspaper report was “speculation”.