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Shepway based Saga, the travel and financial services group, was yesterday the subject of speculation linking it to a possible £2bn flotation or sale, but the company says it's business as usual reports the Yorkshire Post Today.

Charterhouse Capital Partners, which bought the business for £1.35bn in October 2004, is said to be considering its exit options after reportedly receiving informal and unsolicited approaches for Saga, which specialises in holidays and insurance for the over 50s.

A report said Charterhouse had already recouped its investment in Saga after funding the deal through £500m of its own cash and £880m in debt. 
It has since refinanced the company, raising £500m in fresh debt.

Yesterday's report pointed out that much of the detailed work for a Saga flotation was carried out in 2004 before Charterhouse's acquisition and could be quickly revived.

The eventual sale of the company secured windfalls for the founding De Haan family, as well as for staff.  Roger De Haan, who owned 100 per cent of the over 50s venture founded by his father Sidney in 1951, offered staff – including company pensioners – £1,000 for every year of service. 

The goodwill gesture cost the chairman around £15m and resulted in some workers netting as much as £25,000.

Interest in Saga is likely to be fuelled by consolidation in the travel sector, following the proposed merger of MyTravel and Thomas Cook on Monday.

A spokesman for Folkestone-based Saga declined to comment on the media speculation.

He added: "We are continuing to develop the business as we have been since the management buyout in 2004 and we are not letting this speculation get in the way of running the business and focusing on services."