RBS Begins Direct Line IPO After Talanx Scraps Stock Sale
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Royal Bank of Scotland Group Plc, the U.K.’s largest state-owned lender, will push ahead with the initial public offering of its insurance unit even after Talanx AG, Germany’s third-biggest insurer, pulled its IPO this week.
RBS will offer a stake in Direct Line to institutional and, through intermediaries, individual investors, the companies said in statements today. The IPO may value Direct Line at 3 billion pounds ($4.9 billion) to 3.2 billion pounds, said Eamonn Flanagan, a Liverpool-based analyst at Shore Capital Group Ltd.