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Latest News News Hemscott: "RBS lining up bidders for Churchill and Direct Line - report"

LONDON (Thomson Financial) - Royal Bank of Scotland Group PLC is lining up potential bidders for its Direct Line and Churchill insurance operations, the Financial Mail on Sunday reported.
Investment banks have approached a number of potential buyers for the insurance businesses, which made a 750 mln stg profit last year and could generate sale proceeds of 8 bln stg, the newspaper said.
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Some of the biggest names in investment banking, including UBS, Morgan Stanley and JP Morgan, are trying to find a buyer for the businesses, although the newspaper said it was unclear whether RBS had given its consent for this.
'We have no plans to dispose of Direct Line or Churchill,' the Financial Mail quoted an RBS spokesman as saying.
Some analysts suggest RBS may need to boost its balance sheet by up to 7 bln stg following a possible takeover of Dutch bank ABN-Amro Holdings NV by a consortium involving the Edinburgh-based bank.
RBS Insurance Services also includes Privilege, Green Flag Motoring Assistance, NIG and a number of other businesses.