Direct Line float below target

David Hellier
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RBS is expected to sell shares in Direct Line at just below their book value, according to banking sources.

This would value the home and motor insurer at just below £2.7bn, lower than the £3bn originally targeted, but better than the banks advising RBS had feared. “There are still a couple of issues to be ironed out but demand is better than the banks’ worst fears,” said a source.

The float, which will mark London’s largest share listing this year, is expected to be launched as early as today.