ONE of Southampton's landmark companies today dismissed speculation over its future.

The hares were set running when a money market website claimed the UK subsidiaries of Swedish parent company Skandia Group were up for sale.

But the financial services giant, which has its UK head office in the city centre, has moved swiftly to quash "inaccurate" rumours.

It is understood that many staff at the company, which employs 1,300 people at three offices across Southampton, were at one point concerned for their own livelihoods.

However, managers briefed staff to allay fears, saying: "There is no need to worry - we are not being sold off."

Now Skandia has issued a strongly-worded public statement, setting the record straight.

It said: "The Skandia Group is not offering the UK subsidiaries for sale."

It also added: "The senior management is not exploring a management buyout."

The statement, issued through Jo Gilbey, head of public relations at Skandia, also ruled out any plans to sell subsidiary Bankhall.

Bankhall is a jewel in the crown since it is a leading service provider to thousands of independent financial advisers, supplying, among other things, compliance, training, marketing and IT support.

UK Skandia, launched in 1979, is one of the biggest financial services companies in Hampshire, selling pensions, investment and protection policies.

The registered office is the landmark glass office block at Portland Terrace, Southampton.

UK Skandia manages assets worth more than £14.5 billion and, according to Ms Gilbey, has not received cash support from the Swedish parent company, established in 1855, for the past two years.