Algerian businessman Khalifa arrested in Britain

LONDON, Mar 4 (Reuters) An Algerian businessman who has been on trial in absentia in his North African country on fraud charges has been arrested in Britain, police said today.

Abdelmoumene Khalifa, who was arrested on Tuesday on suspicion of money laundering, is one of 104 defendants, including former government officials, in the mass trial that opened in Algeria on January 8.

''Officers from Economic and Specialist Crime arrested a 40-year-old man on suspicion of money laundering on 27 February,'' a Metropolitan Police spokeswoman told Reuters.

''He has been bailed to return to a central London police station on March 20.'' Khalifa has denied graft charges raised against him in the trial over a case seen as Algeria's worst financial scandal. The trial is expected to last several months.

Khalifa, owner of Khalifa Group, has said he was ready to face trial in Britain and would agree to be questioned in Britain by Algerian judges.

Algeria is seeking the deportation of Khalifa, who has s lived in Britain since 2003. Algeria and Britain signed an extradition agreement in 2006.

The Khalifa Group included a bank, an airline, two television channels and several companies operating in sectors such as car rental, construction, graphic design and catering.

The group employed an estimated 20,000 people.

Authorities estimate more than 1 billion dollar was lost through what they alleged was embezzlement by several Khalifa officials.

The authorities took the decision to liquidate the group after three of its employees were arrested trying to board a Paris-bound jet with suitcases stuffed with 2 million euros in 2003.

REUTERS SP BST2305