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David Miles, the incoming member of the MPC, has this evening suggested that the worst of the UK recession may be over and house prices may have bottomed out. While there is some scepticism with...
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Thursday 16th October 2008
After the swings and roundabouts of the last few days it has now been revealed that not only will Royal Bank of Scotland (RBS) be receiving a massive cash injection from the government, but it is still in talks to sell off a stake in its insurance operation. Renewed talk in the markets is suggesting the RBS is on the verge of selling a 51% stake in the business (which includes the likes of Churchill and Direct Line) to private equity operation CVC Capital Partners.
As we suggested in a number of out recent articles, the vultures are circling the financial markets looking for bargains at a time when companies such as RBS are still desperate for further breathing space. The truth is that the insurance division has been up for sale for nearly a year with bidder after bidder dropping out and forcing the price lower.
There has been no estimate of a price for the possible 51% stake but many in the City believe that the group is being forced to sell the family silverware on the cheap. While retaining a 49% holding still gives them an equity stake in any future revival, control will have been taken away from the group and it will affectively become a silent partner. |
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