ferry subsidiary for about $160 million.

Sea Containers, a Bermuda-based shipping and hotels concern, said it sold the unit to an investor group led by former Sea Containers vice president Mr. M.P.

Aiken and Cinven Ltd., a London-based investment firm.

Wightlink, based in Portsmouth, England, ferries vehicles and passengers from the English mainland to the Isle of Wight.

Sea Containers said the sale was the main component of a $250 million asset sale aimed at reducing debt and high dividend preferred shares and new capital investment.

"The company is also considering the sale of a hotel and or other assets to complete the programme,'' the company said.

Sea Containers president Mr. James Sherwood said the company intends to replace the Wightlink business with new investment in high speed car ferries, a sector of the ferries business pioneered by the company.

Sea Containers lost an Australian appeals court decision with the maker of its high speed catamarans which could cost the company millions of dollars, Lloyd's List reported on May 26.

The decision by the Court of Appeal in New South Wales overturned an earlier decision in Sea Containers' favour.

The dispute centres around the terms of a newbuilding contract between Tasmanian shipbuilder Incat and Sea Containers in 1988, which Incat claimed cost it millions in delivery delays.

Sea Containers, which has not commented on the ruling, could have to pay costs of 8 million Australian dollars.