US investment firm to bid at RBS branch auction

A US private equity firm is looking to swoop in on the auction of more than 300 Royal Bank of Scotland branches, according to Sky News Tuesday.

Centerbridge Partners is understood to have teamed up with UK buyout firm Corsair Capital in recent weeks to look at making offer for the state-backed lender's branches.

It was unclear whether they will make a formal offer for the business.

Centerbridge raised its first fund in 2006 worth $3.2bn and invested capital in companies including troubled car parts-maker Dana.

The company recently opened an office in London to take advantage of struggling businesses in need of rescuing.

The rumoured joint bid from Centerbridge and Corsair is not the first private-equity backed offer for the branches.

Apollo Management and JC Flowers have also joined forces, while Virgin Money is also looking at making a bid.

RBS needs to sell the branches to pay back £45.5bn of taxpayers' money it used to bail itself out during the 2008 banking crisis.

The bank has until the end of the year but said it was likely to ask the European Commission for permission to extend its deadline.

RD