RBS nets £507m from Direct Line

ROYAL Bank of Scotland (RBS) pocketed £507m yesterday as it sold a further 17 per cent worth of shares in Direct Line – the insurer it floated last October.

It sold the 252.3m shares at £2.01 per share – 20 per cent higher than their 175p per share floatation price.

The sale takes RBS’ stake in the insurer to 48.5 per cent, and ahead of the deadline set by the European Commission, as a condition of its 2008 bailout, to sell half its stake by the end of this year.