Kroll, the New-York based risk consultancy, has announced its intention to sell Kroll Security International, its UK-based subsidiary which provides security services in Iraq and Afghanistan. 

The announcement has sparked speculation of a mass pull-out from Iraq by large companies, something which could have a damaging effect on efforts to restore peace in the country. 

There have also been rumours that Kroll has already withdrawn its personnel from the two countries, but chief executive Simon Freakley maintained that the company had no plans to pull out before a sale of the business. 

The reason for the sale, which is expected to be complete within the next few months, was given as a desire to refocus strategy on consulting and training for corporations and wealthy individuals. 

Kroll Security International currently has 350 employees in Iraq and 50 in Afghanistan. The company has suffered three fatalities in the regions since January 2005.