After an aborted attempt three years ago, CVC is back with an offer for RBSI. But is the price right to push a deal through this time?
The story of the day has to be the latest twist in the RBSI saga. CVC has apparently made a bid for the bank-owned insurer, which was scheduled for flotation next year. It’s not the first time: as our special timeline shows, the private equity house expressed interest in the insurer back in 2008, in a consortium with Swiss Re, before RBS pulled the plug on the sale. The newly appointed chief executive, Stephen Hester, was said to be reluctant to do a deal with a private equity house. But then RBS was ordered to divest the business by the EU.
CVC’s latest approach has blown the starting whistle on another round of bidding. As the date for the proposed flotation grows closer, potential trade or private equity buyers will move in. Potential trade buyers include Warren Buffett’s Berkshire Hathaway, Zurich Financial Services and Italy’s Generali, all of whom have been linked with the insurer in the past.
The bank is believed to prefer a flotation – but it’s not really the bank’s decision. RBS remains majority-owned by the taxpayer, and, if the price is right, the bank will sell.
Omega revolt
More political shenanigans at Omega as rebel shareholders launch a public attack on Haverford’s offer. Like RBSI, Omega has effectively been in play for years, and weary staff will be hoping for a solution. The shareholders, however, are determined to protect the value of their investments, with demands for a fixed price offer. If Haverford’s Mark Byrne agrees, the deal will be practically sealed.
Homeserve hits trouble
Insurers that have arrangements with home repair company Homeserve will be worried by this weekend’s news of mis-selling by its call centre staff. The listed company has got a nightmare scenario on its hands, with sales and marketing suspended as staff are retrained, and its share prices taking a tumble. It will not want to lose its key relationships, too.
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