Undervalued sale looks unlikely, says Goodwin.
Royal Banks of Scotland chief executive Fred Goodwin has insisted that the bank will be able to achieve its desired sale price for its insurance business.
“There are a number of people who would all ostensibly be good owners and capable of paying the price that we’re looking for,” Goodwin told reporters on a conference call.
“We had a price in our minds that we were looking for at the start of the process and that hasn’t changed. We’re determined not to sell this for an undervalue, but at this point that doesn’t look like an option that’s going to come to pass.”
RBS’s insurance businesses, which include Direct Line, Churchill and NIG, have been valued at around £7bn, although analysts have questioned whether the bank will achieve that given the prevailing conditions in the debt markets and the level of competition in the private motor market.
Four suitors, widely believd to include Zurich, Allianz and Travellers, have put forward informal bids.
Last week, the bank received a takeup from shareholders of over 95 per cent for its £12bn rights issue.
