Rumours that RBS could float Churchill raised and denied
Speculation by the Independent on Sunday that Royal Bank of Scotland (RBS) might float Churchill was countered by the Scotsman.
The Scotsman said RBS chief executive Stephen Hester had described RBS Insurance, which includes Direct Line and NIG as well as Churchill, as "core assets" and a sell-off was unlikely.
The Independent said RBS’s advisers Morgan Stanley and Hoare Govett raised the idea of selling Churchill, which could happen in the first quarter of next year.
Assets must be sold
The independent said the sale would help RBS's chief executive, Stephen Hester, ahead of a decision from the European Competition Commissioner, Neelie Kroes. She is about to tell RBS which assets it must sell because of its reliance on state aid.
The Independent quoted a source saying: "Nothing should be sacred so it's a sensible move for RBS to reconsider its position on its insurance businesses. When Hester abandoned the sell off of the insurance business earlier in the year the market was in a very different place. Flotations are definitely back and I think there could be plenty of interest in such a listing."
An RBS spokesman said there were no immediate plans for Churchill.
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