Move would encourage investors, say sources
Royal Bank of Scotland (RBS) could slash its valuation of Direct Line by 10% to £2.7bn to encourage investors.
Sources said that RBS was ready to lower the price from the planned £3bn to make sure the flotation goes well, according to The Express.
The market has been difficult for flotations this year, partly because banks have charged high fees for their initial public offering (IPO) services.
RBS is expected to publish a prospectus for the IPO this week, including information about bonuses for Direct Line directors.
The firms working on the IPO include Goldman Sachs, Morgan Stanley, UBS, HSBC and Citigroup.
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