Private equity firm CVC Capital Partners has teamed up with Swiss Re, the world’s largest reinsurance group, to make a bid for a majority stake in Royal Bank of Scotland’s UK insurance assets.
CVC held talks with RBS last week over a possible deal, according to a source familiar with the matter.
The bid would value the RBS division, which includes the household names Direct Line and Churchill, at more than £6bn ($10.41bn). CVC and Swiss Re would need to pay more than 3 billion pounds for a 51 percent stake.
The Sunday Times said the CVC bid is being led by Fred Watt, RBS’s former chief financial officer. It said the CVC-Swiss Re group is in advanced talks with RBS and has been given between four and six weeks to conclude a deal.
CVC, Swiss Re and RBS all declined to comment on the matter.
Source: Thomson Merger News