Old Mutual ends HSBC talks over Nedbank stake sale

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British insurer Old Mutual announced on Friday that it had ended discussions with banking giant HSBC over the sale of a majority stake in South Africa's Nedbank.

"Old Mutual plc has been informed today that HSBC will not proceed with a partial offer for Nedbank following the expiry of the agreed exclusivity period," the insurance company said in a statement.

"Consequently, Old Mutual is no longer in discussions with HSBC concerning its shareholding in Nedbank.

"The reasons for HSBC's withdrawal were not disclosed to Old Mutual, but were not, as far as Old Mutual is aware, related to any adverse findings during HSBC's due diligence."

The news followed press reports that HSBC was close to abandoning its eight-billion-dollar plan to buy the majority stake in Nedbank. HSBC was not available for immediate comment.

© 2010 AFP

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