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Old Mutual looks to expand UK profits via acquisitions

Date: Mon, 11 Aug 03 Analysis

LONDON, UK - Old Mutual, the South African-based financial firm, is on the lookout for possible takeovers in the UK and may initiate a deal without asking shareholders for more cash, according to reports from The Guardian.

Julian Roberts, the group's finance director, has confirmed that Old Mutual is not particularly hurried, but is interested in deals in life insurance and asset management.

The group, which reported a 4 per cent rise in operating profit to £395 million earlier this week, is looking to increase the 8 per cent of profits it currently makes in the UK as part of an effort to balance its operations in South Africa and the US.

'The only way to plug the gap is with acquisitions,' said Mr Roberts, adding that a recent financing had left the group cash rich.

Mr Roberts also suggested that Old Mutual may turn to additional debt rather than raise fresh cash from shareholders if a deal was found.

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