Inchcape Braces For Wing Demerger

On Tuesday, the day after revealing its first-half results, the international trading group will hold separate briefings with analysts on the performance of its insurance arm.

Hoare Govett has been hired, in place of Inchcape's own broker, SBC Warburg, to assist merchant bank Barings in preparing an introduction to the official list. Flotation remains the second string, however.

Inchcape is expected to make clear on Monday that demerger, with shares in Bain being issued free to Inchcape investors, is the most likely route to the disposal. Inchcape's desire to raise cash through a flotation has been diminished because receipts from the impending sale of its Testing Services business will be some