Insurer still plans to float at the end of 2012
The Royal Bank of Scotland has appointed UBS to advise on the sale of its insurance arm Direct Line Group.
The bank has been appointed as joint bookrunners with Goldman Sachs and Morgan Stanley, according to a report today in City AM.
A spokesman for Direct Line said the firm still plans to float at the end of this year.
Earlier this month RBSI chief executive Paul Geddes said the Direct Line group was putting “all its efforts” into plans for an initial public offering [IPO], despite talk that a private equity firm would make a swoop for the company.
RBS has to sell the majority of the insurer by the end of 2013 and its entire stake by the end of 2014 under the terms of its 2008 bail-out by the UK government.
The bank holds its AGM in Edinburgh later today.
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