Government takeover triggers sale to Spanish bank
Spanish bank Bankinter said on Thursday it would pay Royal Bank of Scotland €426m (£375m) in cash for the half of the Spanish unit of Direct Line Insurance it does not already own, Reuters reported.
Bankinter is buying the remaining 50% of Linea Directa Aseguradora after exercising a clause giving either bank the right to buy the other's share should a third party took control of either of them.
That clause from the 1994 deal establishing Linea Directa came into effect in November when the British government bought took control of RBS after investors shunned a rescue plan needed to save the bank after massive write-offs.
Independent auditor PricewaterhouseCoopers set the price.
The Spanish insurer has 1.6 million policyholders and made a pre-tax profit of €100m in 2008.
RBS was not available to confirm or deny the story this morning.
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