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Direct Line float below target
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.