Serco in talks to sell environmental unit to Rutland -source

LONDON, Dec (Shanghai: 600875.SS - news) 10 (Reuters) - Troubled British outsourcer Serco is in talks to sell its environmental services arm to turnaround specialist Rutland Partners for around 75 million pounds ($118 million), a source close to the situation said on Wednesday.

The unit, which runs contracts from waste and recycling collection to street cleaning and landscaping, was one of several businesses recently put up for sale by new chief executive Rupert Soames, who is restructuring the firm after a string of profit warnings and contract scandals.

Serco, whose services include managing Britain's Atomic Weapons Establishment, running Dubai's Metro (Other OTC: MTRAF - news) , and military support for the UK and United States, declined to comment.

Rutland Partners was not immediately available for comment.

Serco's environmental services business has a 1.5 billion pound order book and contracts spanning up to 30 years.

Shares (Frankfurt: DI6.F - news) in the group were up 4.7 percent to 172 pence at 1225 GMT, boosted by news earlier on Wednesday that it had signed a new deal to provide Australian immigration detention services.

($1 = 0.6376 pounds) (Reporting by Neil Maidment; editing by Jason Neely)