However, bankers say that it will be hard for any bidder to justify that price.Equitable was forced to put itself up for sale after losing a House of Lords judgment that will force it to make more than £1.5b of pay-outs to pensioners who were sold so-called guaranteed annuities policies in the 1970s and 1980s.The company has also seen sales slide because of the adverse publicity surrounding the handling of the guaranteed annuities issue.However, the company has a blue chip customer base and one of the most effective sales forces in the business. It is also seen as one of the most efficient producers at a time when the ability to manufacture pensions products at minimal cost is going to be crucial in the battle to win business in the new low cost stakeholder pensions environment.The Pru has long been regarded as favourite. It has £7bn in its life fund which it can use to bolster Equitable's financial position without needing to tap shareholders or raise extra debt.Aegon was having difficulty structuring a transaction that would offer more in headline terms than any of the British contenders, The Pru and CGNU can also point to potential synergy benefits from taking out overlaps in their back offices.Allianz, the German insurer, is also understood to have had a serious look at Equitable but decided not to bid. Barclays Bank and GE Capital are understood to have registered interest but do not appear to have made formal offers..

British Telecom is bringing forward the announcement of radical restructuring plans in an effort to counter what directors see as increasingly "hysterical" press and City speculation over the company's future and the position of its chairman, Sir Iain Vallance. British Telecom is bringing forward the announcement of radical restructuring plans in an effort to counter what directors see as increasingly "hysterical" press and City speculation over the company's future and the position of its chairman, Sir Iain Vallance. The outcome of BT's yearlong strategic review was due to have been announced in December or early next year, but under growing pressure in the City, the company is now expected to unveil its grand plan either with the interim results on 9 November or sooner.One senior BT executive said; "We have been accused of foot-dragging over the strategic review, but these are very radical changes that are being considered. We cannot afford to be reckless with the company's future, and we have to get it right."In a straw poll last week, a number of big fund management groups said that although Sir Iain had outstayed his welcome and should have retired earlier, there was no immediate pressure for his head. "We are reserving judgement until we have seen the outcome of the strategic review", one fund manager said.Most saw last week's appointment of a new finance director, Philip Hampton - well respected in the City for his handling of the British Gas breakup - as "a very positive step", and for the time being seemed prepared to give Sir Iain the benefit of the doubt.There was dismay in some parts of BT over an apparent attempt by Lord Marshall, the deputy chairman, to canvass City opinion late last week on appetite for "a sacrificial change at the top".One source said; "He must have known it would get out. The man's either a fool or he's deliberately trying further to destabilise the situation.

He's made it look as if the board is in disarray, so it is no wonder there is so much speculation". Lord Marshall is due to be replaced next year by Anthony Greener, a former chairman of Diageo.Rapidly escalating levels of debt, intense competition, and a sudden reversal in investment sentiment towards the telecoms sector, have reinforced the urgency of the review, which is expected to include an enhanced programme of spin offs and disposals.The review will detail proposals to reduce group endebtedness by at least a third - or around £10bn - and could involve plans for demerging the core regulated network from the rest of the business.Most of BT's revenue still comes from local and long distance networks, the part of the business which is under most pressure. BT is determined to demonstrate the growing value of its other businesses in mobile telephony and the internet.It is thought certain that as part of the review BT will attempt to float its wireless interests under the Cellnet name, though with France Telecom due to refloat Orange later this year and growing investor concern over the cost of mobile licences, this is not going to be as easy as it was.The option of a more general merger of business services with those of AT&T, which is under similar pressure to BT in the United States, is also high on the agenda.. Ambitious plans to develop techMARK, London's high technology index, and AIM, the smaller companies market, into the pan-European market of choice for growth companies, were outlined by Don Cruickshank, chairman of the London Stock Exchange, at the weekend. Ambitious plans to develop techMARK, London's high technology index, and AIM, the smaller companies market, into the pan-European market of choice for growth companies, were outlined by Don Cruickshank, chairman of the London Stock Exchange, at the weekend. In a speech to the annual conference of the Association of Private Client Investment Managers and Stockbrokers (Apcims) in Brussels on Saturday, Mr Cruickshank repeatedly apologised for the LSE's past errors but said brokers could expect better in future.With OM Gruppen's £800m hostile bid still hanging over his shoulder, Mr Cruickshank offered a blueprint for establishing a new consultation structure within the Exchange and said he was determined to rid London of competitive disadvantages, such as onerous stamp duty.The automated Sets trading system would be made easier to use, he said. But he dismissed suggestions that existing technology would be replaced.

"Don't draw the wrong conclusion from our choice of [the German technology] Xetra in the merger process. Don't be drawn by the siren 'gee whiz' noises from OM - and others. We have a modern hardware architecture, shared with telecoms, IT and internet companies," he said.Mr Cruickshank admitted the past few weeks had "not been easy" after the iX merger was thrown into disarray in August.He expressly appealed to brokers to reject the Swedish group's hostile bid, urging: "We must see off the bid from OM It is a poor deal for shareholders and customers alike" He added: "We don't have to do deals We may at some future time wish to do so But we don't have to Our strategy is to develop an even stronger business... [to] strengthen our hand in any future industry rationalisation and in seeking the right partners."Mr Cruickshank conceded that during the iX merger process the Exchange had not listened carefully enough to what its customers were saying. To remedy that, he proposed a new consultation structure anchored by an Exchange Markets Group.