Mandelson's consultancy firm cutting ties with him after Epstein emails

LONDON (Reuters) -Peter Mandelson's consultancy firm is cutting ties with him after newly surfaced emails revealed the extent of his relationship with the late U.S. sex offender Jeffrey Epstein, a person familiar with the matter said on Thursday.

Mandelson was sacked earlier on Thursday as Britain's ambassador to Washington by Prime Minister Keir Starmer amid anger over the content of the emails and letters that became public.

Global Counsel, which Mandelson co-founded in 2010, is in the process of divesting his multi-million pound stake, according to a person familiar with the matter, adding that the process began in January. Companies House filings in June showed he still retained a 21% shareholding.

Global Counsel and Mandelson did not immediately respond to a request for comment.

Mandelson had described Epstein as "my best pal" in a letter, and had advised him to seek early release from jail.

On Wednesday, Mandelson had said he deeply regretted ever meeting Epstein, and that he had carried on the association "for far longer than I should have done", suggesting he had believed the lies of a "charismatic criminal liar".

Britain's foreign ministry said when announcing Mandelson's withdrawal that the emails had revealed a materially different relationship than was known at the time of his appointment.

(Reporting by Sam Tabahriti; Editing by Daniel Wallis)