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Lloyds Banking Group's private equity unit LDC is in talks to acquire legal outsourcing company CPA Global for 400 million pounds, the Financial Times reported on Monday.
A spokesman for Lloyds declined to comment on the report, which did not cite sources.
A CPA Global spokesman declined to comment on market rumours.
He added that CPA Global was speaking with a number of potential investors, without giving further details.
The Financial Times said apart from LDC there was a further suitor for CPA Global with final bids due next month.
CPA Global, which is based in Jersey in the Channel Islands, offers a range of general legal and intellectual property support services.
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