The chief executive of Moneysupermarket.com, Europe's largest online price comparison website, cleared the way for its £1 billion flotation today by buying out his co-founder Duncan Cameron.

Simon Nixon, who founded the company along with Mr Cameron in 1998, has agreed to buy the bulk of Mr Cameron's 47 per cent stake for £162 million in cash. But Mr Cameron will retain a 5 per cent stake.

Mr Cameron, an IT expert, left the business five years ago after he had a falling out with Mr Nixon, a former mortgage consultant. The pair met because Mr Nixon was dating Mr Cameron's sister at the time.

Moneysupermarket.com has appointed the investment bank UBS alongside Credit Suisse, its main financial adviser, to work on the float, which is expected to take place in the next few months.

It is understood that the price paid for Mr Cameron's shares does not reflect the value they are expected to achieve on flotation, because investors would have been reluctant to take part in a float with a "sleeping" investor owning nearly half the company.

Mr Nixon has described his former business partner as a "potential loose cannon" who could have demanded a seat on the board or influence strategy at any time.

The company, whose brands include Travelsupermarket and Insuresupermarket and also compares prices on cars, broadband, utilities and mobile phones, is estimated to have made profits of £30 million last year on turnover of approximately £100 million.

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