By Chris Vellacott
LONDON, Dec 12 (Reuters) - UK insurer Legal & General has hired Goldman Sachs to advise on a possible bid forthe general insurance arm of the Co-operative Group, a sourcefamiliar with the process said.
The group, which has already sold its life insurance andsavings business, expects to sell its general insurance businessduring 2014.
Legal & General, Goldman Sachs and the Co-op declined to comment.
The Co-op group is battling a capital shortfall at its bankand scandal over alleged drug-taking by its former chairman.
Earlier on Thursday it appointed ex-Treasury minister PaulMyners to review its operations for a token one-pound salary.
L&G Chief Executive Nigel Wilson has pursued a strategy ofsmall, bolt-on acquisitions since the start of 2013 such as the151 million pounds ($246.53 million) purchase of annuity firmLucida and its buyout of investment funds supermarket Cofunds.
The firm was also one of six British insurers pledging toinvest 25 billion pounds in transport and energy projects overthe next five years in support of government attempts toencourage private sector investment in infrastructure.
The Co-op announced it planned to sell its general insurancebusiness in March.
Marks & Spencer (MKS)
Land Securities (LAND)
Legal & General (LGEN)