Three U.S. private equity firms have made the shortlist in the 1.4 billion pound ($2.45 billion) auction for British broker Collins Stewart Tullett (CSTL.L: Quote, Profile, Research), The Business newspaper reported.

The newspaper said Kohlberg Kravis Roberts, Blackstone and Hellman & Friedman had made the shortlist, without citing any sources. U.S. private equity firm Thomas H Lee has not made the list after its involvement in Refco (RFX.N: Quote, Profile, Research), the U.S. commodities brokerage which this week nearly collapsed, the newspaper said. Thomas H Lee holds a stake in Refco. The newspaper cited sources familiar with the situation as saying that whichever firm buys Collins Stewart, it will want to retain Terry Smith, the broker’s Chief Executive Officer and co-founder.

Posted: 10|17|05 at 8:04 am. Filed under: UK News.