UK - Pension Corporation is considering an initial public offering as pension plan deficits soar, a source familiar with the matter confirms.
The insurer - which in 2008 was the second biggest pension buyout provider in the UK behind Legal & General - could look for cash in the public markets to raise the capital it needs.
The source said: "The IPO is a possibility, but a trade sale could be another option for the business. The company is considering a wide range of options. However, even though an IPO could take place in 2010, it has not been planned yet."
Pension Corporation is also known for its expansion by acquisition strategy, which saw it buying Synesis last year and in talks with Paternoster over a takeover last month.
The source said: "The industry is definitely heading towards consolidation, so other acquisitions could take place in the future."
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