PRIVATE healthcare specialist Bupa last night confirmed it was in exclusive talks over the £100m sale of ten hospitals.

The venture capital operation of insurer Legal and General, which owns Vue Cinemas and the Unique Pub Company, is believed to be the bidder.

Bupa, which announced plans to sell the ten hospitals in June, said it had granted a period of exclusivity to one party, but did not name it.

The sites are being sold following a review of its portfolio, which includes 34 hospitals, 250 care homes and a medical insurance operation.

As part of its repositioning in the healthcare market, Bupa is selling smaller hospitals in Farnham, Reading, Hythe, Hastings, Halifax, Leeds, Blackpool, Hull, Macclesfield and Wrexham.

It is expected Bupa will invest the cash over three years in its remaining hospitals, most of which are twice the size of the sites being sold.

They include a 35-bed unit in Washington, Wearside - its only site in the region after it closed its facility in Scarborough, North Yorkshire, in 2002.

Last year's review by Bupa only looked at its hospitals, rather than the wider business, which last week announced a 35 per cent rise in annual profits to a record £182.2m.

The company hailed a strong performance by its overseas operation as sales at the core insurance operation rose to £2.46bn from £2.28bn previously.

Income from non-insurance activities, including hospitals, care homes and health screening, grew to £1.16bn, from £1.09bn.

Legal and General Ventures already has interests in the healthcare market, following its acquisition of Craegmoor Healthcare, a provider of specialist care homes for the elderly.