Worldpay looks to raise $1.4 bln in London listing

* Worldpay presses ahead with London listing plan

* Takeover by France's Ingenico (Paris: FR0000125346 - news) had been an alternative

* Plans to cut debt by raising 890 million pounds (Adds details)

Sept 18 (Reuters) - British payments processing firm Worldpay Group Ltd (IPO-WORLD.L) plans to raise about 890 million pounds ($1.4 billion) after deciding to list its shares rather than being taken over by French rival Ingenico.

The company, owned by investment groups Advent International and Bain Capital, said it expected a free float of at least 25 percent when it joins the London Stock Exchange (Other OTC: LDNXF - news) next month.

A question mark had been hanging over the listing after the company attracted interest from a number of potential buyers in recent weeks.

These including French payments company Ingenico, which offered as much as 6.6 billion pounds including debt, a person familiar with the matter previously said.

Worldpay's private equity backers could have opted for a sale had the U.S (Other OTC: UBGXF - news) . Federal Reserve decided to significantly increase interest rates on Thursday, sources said.

Shares (Berlin: DI6.BE - news) in Ingenico jumped eight percent after it emerged that it would not be buying Worldpay.

Worldpay, which provides platforms that allow merchants to accept payments by cards and other methods, said the IPO would give it access to more capital raising options and help it reduce debt.

As well as Ingenico, rivals offering similar services include First Data, owned by private equity firm KKR.

The listing also paves the way for Worldpay's existing shareholders, senior management and employees to cut their investment in the firm.

The company's private equity owners bought it from Royal Bank of Scotland in 2010 for about 2 billion pounds.

It (Other OTC: ITGL - news) plans to pay 20-30 percent of its profits after tax in dividends to shareholders, starting with an interim dividend for 2016.

Bank of America Merrill Lynch, Goldman Sachs (NYSE: GS-PB - news) and Morgan Stanley (Xetra: 885836 - news) are leading the offer, with Barclays (Swiss: BARC.SW - news) , Credit Suisse (Other OTC: CDSSF - news) and UBS (NYSEArca: FBGX - news) acting as joint bookrunners, the firm said. ($1 = 0.6417 pounds) (Reporting by Esha Vaish in Bengaluru and Emiliano Mellino in London; Editing by Anupama Dwivedi and Keith Weir)