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Last Updated: Sunday, 26 November 2006, 11:57 GMT
AA 'planning' 3bn sale or float
AA mechanic
The AA has more than 15 million members
The owners of the AA, Britain's largest motoring organisation, are planning to either sell the business or float it on the stock market, it is reported.

The Mail on Sunday said accountants PricewaterhouseCoopers were compiling a financial report that could help sell the AA to investors or buyers.

It said private equity owners CVC and Permira wanted to raise 3bn ($5.8bn) for the 15 million-member business.

They bought the AA from British Gas owner Centrica in July 2004 for 1.7bn.

The takeover was followed by a major round of job cuts in a bid to improve the organisation's profitability.

It shut its loss-making tyre-fitting unit and most of its vehicle-servicing centres, with the loss of 1,300 jobs.

History of the AA
1905 AA started with 100 members to help motorists avoid speed traps
1908 Appoints agents and repairers throughout UK
1912 Starts inspecting hotels
1920 Starts car inspection service
1967 Starts insurance broking service
1999 Bought by Centrica for 1.1bn
2004 Sold by Centrica for 1.75bn

At the same time it also invested heavily in teleworking, and now has more than 300 former call-centre workers answering calls at home.

The organisation could be an attractive target for another private equity group, or for an insurance company.

The RAC, Britain's second biggest motoring organisation, is owned by insurance giant Aviva, the parent company of Norwich Union.

AA and GMB clash over jobs review
19 Apr 05 |  Business
AA cuts 1,300 jobs in shake-up
30 Nov 06 |  Business
Centrica gets bumper price for AA
01 Jul 04 |  Business
Centrica starts talks to sell AA
21 Jun 04 |  Business

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