Britain's AA eyes 4 bln stg London listing -Sky

Reuters - UK Focus

June 5 (Reuters) - Britain's Automobile Association (AA) isplanning a 4 billion pound ($6.72 billion) stock marketflotation that its parent, Acromas Holdings, could announce asearly as Friday, Sky News reported on its website.

The broadcaster, citing a source, said deal was beingfinalised and could still fall through. It added that thelisting would value the motoring services firm's equity at about1.3 billion pounds ($2.18 billion). (http://link.reuters.com/bap89v)

Sky said 10 institutional investors had been lined up to buysubstantial stakes in the AA, naming Aviva Investors, Blackrock (Berlin: BLQA.BE - news)Inc, JP Morgan Asset Management, Lansdowne Partners andLegal & General Investment Management as some of the deal'sbackers.

Sky's source also said Bob MacKenzie, a former boss of carinsurer Green Flag, was slated to become the AA's new chairman.

The parent company, Acromas, declined to comment, while theAA could not be reached for comment outside of regular businesshours.

Acromas, which is owned by private equity firms Charterhouse, CVC (Taiwan OTC: 4744.TWO - news) and Permira, was created in2007 at the peak of the buyout boom by the 6.2 billion poundsmerger of the AA and British travel and insurance company SagaPlc.

Saga's shares have performed worse than initially expectedsince their market debut last month as the market for flotationsin London has lately become more turbulent.

In other flotations, Greetings card retailer Card Factory saw its shares decline after the start of dealings andfashion retailer Fat Face (IPO-FFFL.L) pulled its flotationplans a day before Saga's debut. ($1 = 0.5956 British Pounds) (Reporting by Richa Naidu in Bangalore)

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