Financial Security Assurance Holdings Ltd. was slated to price an initial public offering late yesterday, sources involved in the deal said. Pricing information was not available, and sources said the offering might have been delayed by the Securities and Exchange Commission on a technicality.

AMBAC Inc. faced a similar snag during its IPO in 1991.

Salmon Brothers Inc. is the lead underwriter on the FSA deal.

The company is expected to sell three million shares while U S West Capital Corp. is to sell 11.5 million, according to FSA's filing with the SEC.

If the over-allotment options are exercised, approximately 60.4% of FSA will be publicly owned; U S West Inc. will retain 32.2% of its shares in FSA, and Tokio Marine and Fire Insurance Co. Ltd. will keep 7.4%. If the over-allotment options are not exercised, U S West will own 39.9%.

Proceeds from the sale -- estimated at $67.3 million based on a price of $24 per share -- will be used to increase FSA's capital base and to provide a portion of the funds employed in a restructuring in October.

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