Carlyle in talks on 500 million pound takeover of Innovation Group

LONDON (Reuters) - U.S. private equity firm Carlyle is in advanced talks about buying Innovation Group for 40 pence a share in cash, valuing its equity at almost 500 million pounds ($769 million), the British software company said on Friday. Innovation, which provides software and services to help insurers process claims, said the talks may or may not lead to a deal. Shares in Innovation Group, which have risen by 18 percent in the last 12 months, were trading 6 percent higher at 37.5 pence at 1029 GMT. Under takeover rules, Carlyle has until Sept. 25 to make a firm offer for Innovation or announce it does not intend to make an offer. Innovation Group is being advised by Investec. (Reporting by Paul Sandle; editing by Jason Neely)