RBS narrows number of bidders for branch sale

Royal Bank of Scotland (RBS) has culled the number of bidders for more than 315 of its branches down to three rival factions of London investors and private equity groups.

Royal Bank of Scotland (RBS) has culled the number of bidders for more than 315 of its branches down to three rival factions of London investors and private equity groups.

The lender is required to sell the branches as a condition of its £45bn taxpayer bailout in 2008.

RBS has been courted in recent months by City investors, private equity firms and Spanish bank Santander.

Santander had agreed to pay £1.65bn for the branches but the deal fell apart last October largely due to mismatched IT systems.

A bid from JC Flowers, the buyout group headed by former Goldman Sachs banker Chris Flowers, and Apollo was also unsuccessful, sources told the Financial Times.

The JC Flowers-Apollo bid had proposed making an upfront investment of about £500m in the lender.

RBS now has two rival factions of City investors and a private equity group left vying for control of the bank.

Among the remaining bidders is a consortium headed by former Tesco Finance Director, Andrew Higginson, which comprises more than 20 asset management companies, including Threadneedle, Invesco Perpetual and Schroders.

Another in the running is a grouping of private equity firms Corsair and Centerbridge along with British investors including Standard Life and Lord Rothschild's RIT Capital.

AnaCap Financial Partners, a London-based group, has confirmed it is also seeking to buy branches.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021