Citing "sources close to the company" Reuters has reported that order books on the flotation of Royal Bank of Scotland's insurance business Direct Line have been covered three days into the company's nine day investor roadshow.
As part of an agreement with the EU, the bank has to sell Direct Line by the end of 2014. An initial tranche is being offered this month at between 160p and 195p, valuing the business at around £2.6bn, lower than the £3bn analysts had been expecting.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Direct Line offers home, travel, pet and car insurance. It also owns the Churchill and Privilege brands and the breakdown business Green Flag.
CM
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farmsInheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shockHigh earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings
