Stmnt re CGNU and CCF

HSBC Hldgs PLC
CGNU PLC
21 December 2000


The following is the text of a joint announcement issued by CGNU plc and CCF
Holdings Limited today:      

                                                                              
      CGNU AND CCF SELL STAKES IN QUILTER HOLDINGS LTD               

CGNU plc, the majority shareholder in Quilter Holdings Ltd
('Quilter') and CCF Holdings Ltd announce that the
shareholders of Quilter have entered into an agreement to
sell their shareholdings in Quilter to Morgan Stanley Dean
Witter and Co ('MSDW').  The total consideration of
approximately £172 million will be payable in cash and stock
on completion.  CGNU and CCF are to receive cash, and
Quilter directors and staff are to receive a combination of
cash and MSDW shares.

Following the exercise of management options and immediately
prior to the change of ownership, the ordinary shares in
Quilter on a fully diluted basis at the time of sale will be
owned in the following proportion: CGNU plc 56.7%, CCF
Holdings Limited 20.2% and directors and staff 23.1%.

The transaction is subject to regulatory approval and is
expected to complete in the first quarter of 2001.

Quilter is a private client investment management company
with £4.9 billion assets under management at 30 June 2000.

Notes to editors:
1. This announcement is issued jointly by CGNU plc and CCF
Holdings Ltd.
2. CGNU plc is the UK's largest insurance group and the
world's sixth largest insurer based on gross worldwide
premiums. The group was created from the merger of CGU and
Norwich Union on 30 May 2000.
3. CGNU acquired Quilter in November 1988 and announced its
intention to sell its stake on 15 September 2000.
4. CCF became a member of the HSBC Group in July 2000.  With
some 6,000 offices in 81 countries and territories, and
assets of US$580 billion at 30 June 2000, the HSBC Group is
one of the world's largest banking and financial services
organisations.
5. The vendors were advised by Credit Suisse First Boston
Europe Ltd.