The
Financial Times is reporting that the group is looking at:
a bid for Royal Bank of Scotland's insurance assets, including Direct Line and Churchill, put up for sale this week and valued at up to £10bn [$19.9 billion]. Kohlberg Kravis Roberts and Apax Partners are expected to lead any consortium bid, with Lehman Brothers playing a supporting role.
Other potential private equity bidders may include Blackstone Group LP, Candover Investments plc, Cinven Ltd. and JC Flowers & Co., the FT said.
The insurance unit had operating profit of £683 million and premium income of £6.4 billion in fiscal 2007.
Earlier this week Royal Bank of Scotland announced a raft of measures to rebuild its reserves including a £12 billion share sale and the disposal of insurance and other assets. However, at the time of the announcement, RBS CEO Fred Goodwin said, "[The insurance division] is not going to be sold unless we can attract a very high price for it." - George White
See Financial Times story
See TheDeal.com article on RBS asset auction
See Auction Block data on RBS asset auction
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