The AA no longer fits in with the rest of Centrica's businesses

With its bright yellow logo, the AA is one of the UK's best-known firms and has more than 12 million members.

However, Centrica has said it wants to focus on its main utilities businesses and already has sold the Goldfish banking and credit card unit.

Centrica paid �1.1bn for the AA in September 1999 and is reported to be seeking offers in excess of �1.5bn.

The firm, which owns British Gas, has expanded beyond the UK by entering the US market and is now also a telecoms provider.

Early days

The company said that "it is in preliminary discussions regarding the potential sale of the AA.

History of the AA 1905 AA started with 100 members to help motorists avoid police speed traps. 1908 Appoints agents and repairers throughout UK. 1910 Introduces written routes for drivers. 1912 Starts inspecting hotels. 1914 Membership reaches 83,000. 1920 Starts car inspection service 1967 Introduces insurance broking service 2004 Membership tops 12m. Source: AA

"A further announcement will be made in due course if appropriate".

Centrica is expected to use money from the sale to finance expansion.

Earlier this month, the energy group announced the acquisition of the Killingholme power station in North Lincolnshire.

Wider range

Once part of Britain's state-owned gas industry, Centrica now also offers power to residential and business customers.

It also has expanded into gas production and telecommunications services. Its phone operations in the UK are One.Tel and British Gas Communications.

News of the possible disposal was well received by investors, with Centrica shares closing 2.3% higher.

Analysts said the AA, which also offers insurance and loan services, does not dovetail with the rest of Centrica's businesses.