Henley Group will separate into two public corporations: a real estate concern and an industrial company.

Henley Group said it might sell its entire 4.2 percent stake in Wheelabrator.

Henley Group said earlier in the week that it had acquired a large stake in the company for investment purposes.

Henley Group owns less than 5 percent of the company's stock, which it said had been purchased for investment reasons.

The Henley Group, 300,000 shares at $21.50 a share.

Henley Group controls 51.6 percent of the company.

Henley Group offered $63 a share in cash and securities.

The Henley Group has retained the balance of the company, except for a small percentage held by management.

In the first six months of 1989, the Henley Group lost $50 million because of good will.

As a result, the 55 percent interest owned by Henley Group dropped to 52 percent.