Friday May 2, 12:29 PM
Texas Pacific eyes RBS insurance arm
LONDON (ShareCast) - Royal Bank of Scotland (LSE: 91ID.L - news) 's £8bn insurance wing may fall into the hands of private
equity firm Texas Pacific Group, according to a report in today's Daily Telegraph.Most of the interest is centred on RBS (LSE: RBS.L - news) 's Churchill and Direct Line insurance brands, although TPG is said to be prepared to take on the whole business. "TPG is doing its homework on the business now. It is very premature and no decision has yet been made to bid for it, but TPG is interested," a source told the paper. There have been no formal discussions between the pair yet. RBS announced plans to offload the unit last week alongside news of a heavily discounted £12bn rights issue, Britain's biggest-ever cash call. The money will shore up its balance sheet following write downs linked to dismal credit market conditions and those associated with last year's £56bn purchase of Dutch bank ABN Amro (Amsterdam: ABAGB.AS - news) .
Reports suggest that AIG, Allianz, Axa (Paris: FR0000120628 - news) and Generali are all interested in buying the insurance division, which also includes the Privilege brand. An information memorandum could be sent out in the next few weeks, said the Telegraph.
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