Gas men sell-off in pipeline

Lattice Group is considering selling off an 850-strong army of gas men, in preparation for its merger with National Grid.

The board of the gas pipeline operator, led by Sir John Parker, is expected to meet within the next month to decide the fate of the division, known as Fulcrum Connections.

The operation, run by Ian Barnes, connects gas appliances for domestic and industrial customers, but it is no longer considered to be core to Lattice's business.

A Lattice spokesman said: "We are mulling our options for Fulcrum Connections as part of a strategic review of the business."

Lattice has not yet appointed a bank to sell Fulcrum, but the company is understood to have quietly tested the market with prospective buyers. The company is also considering the sale of a smaller division, Lattice Energy Services. Employing 50 people, it connects electricity supplies and converts gas equipment for industrial customers.

Together, analysts believe that the two companies could be worth up to £75m. Already, Lattice is pressing ahead with the sale of The Leasing Group, which controls a fleet of 27,000 commercial vehicles. It is understood that it is close to being sold to privately owned Asset Investment Group.

Lattice's telecoms arm, 186k, is also on the stocks. Last week the company revealed that Lattice had received six non-binding offers for the business.

Once these deals are out of the way, Lattice is expected to complete its merger with National Grid, subject to approval from the regulators.