Motoring organisation the AA is at the centre of talks that could lead to the business being sold by British Gas owner Centrica, it emerged today.

A statement from Centrica confirmed its involvement in "preliminary discussions regarding the potential sale of the AA", but it did not provide any further details.

The announcement comes a day after a report said chief executive Sir Roy Gardner no longer viewed the breakdown and financial services operation as a core element of Centrica's long-term strategy.

It is thought the AA could fetch more than £1.5 billion - six years after Centrica paid £1.1 billion for it.

Monday June 21, 2004