Jump to content
House Price Crash Forum
tuggybear

Rbs Hopes Dashed As Zurich Pulls Out Of Auction

Recommended Posts

Royal Bank of Scotland suffered a setback to its plans to beef up its balance sheet after Zurich Financial pulled out of the auction for its insurance arm yesterday.

RBS hopes to raise as much as £7 billion from the sale of the business, which includes the bestselling Direct Line and Churchill brands.

However, analysts' forecasts of the expected proceeds have been dwindling alongside falling share markets and concerns about the UK economy.

Zurich, a Swiss insurer with large UK operations, announced it had decided to withdraw from further negotiations after a “detailed review”. Zurich was regarded as one of the most serious contenders for the assets. The German insurers Allianz and the US insurers Allstate and Travelers may still be interested.

Allianz yesterday faced its own setback when Lloyds TSB ended its interest in buying Dresdner, its banking subsidiary. Lloyds is also understood to have backed out of further talks on buying German bank Postbank.

Sir Fred Goodwin, chief executive of RBS, said at the bank's trading update a month ago that talks on selling the insurance arm were ongoing. But he emphasised then that RBS would not deal at fire-sale prices and would not be held to a timetable.

Plans to sell the the insurance division were unveiled alongside RBS's £12 billion rights issue. which was completed last month. RBS, which is being advised by Merrill Lynch, declined to comment.

Lloyds TSB is thought to have pulled back from its German ambitions because the value to be extracted from a deal was less than it had originally thought.

Lloyds, which has been less damaged by the credit crunch than most of its peers, has been exploring acquisition opportunities thrown up by the banking crisis.

It is considered unlikely to be interested in Bradford & Bingley, but has not ruled an opportunistic bid for Alliance & Leicester. The bank has been pushing into UK mortgages and midmarket corporate loans as more challenged rivals pull back.

Link : http://business.timesonline.co.uk/tol/busi...icle4312768.ece

Share this post


Link to post
Share on other sites

Soon all the banks will be trying to sell their silverware to each other and none will be buying. Life's a bitch.

Share this post


Link to post
Share on other sites

I work for Travelers in Redhill, Surrey....

Hope to god they don't carry on with the bid. Travelers are the second biggest insurer in the States (next to AIG) and is one of the few US insurers not to have exposure to sub-prime / monoline disasters and quite want it to stay that way thank you very much...

Must send an email or two to Jay Fishman about this naughty Scottish bank!

Share this post


Link to post
Share on other sites

The bit I do not get : BOE has offered to swap 50Billion + for all the banks, toxic crap, why the need rights issues?

The Banks have NO confidence in Banks, The shareholders have no confidence in Banks, and its getting worse!

Share this post


Link to post
Share on other sites
The bit I do not get : BOE has offered to swap 50Billion + for all the banks, toxic crap, why the need rights issues?

The Banks have NO confidence in Banks, The shareholders have no confidence in Banks, and its getting worse!

I would say you are 100% correct - the RBS rights issue was an unmitigated disaster.

Share this post


Link to post
Share on other sites
I would say you are 100% correct - the RBS rights issue was an unmitigated disaster.

i don't know... I did a debt for equity swap where I swaped my low interest current account for high interest equity certificates at natwest !

lol

Share this post


Link to post
Share on other sites

I no longer believe we are in the usual 7-10 year cyclical boom & bust scenario. What I think may be occuring is something far worse. A structural failure of our financial system. That is "system."

It was once said that debt is good. Deficit accounting began in the late 1700's and has persisted until now. The shifting paradigm will take a lot down with it and what emerges at the other end may not be pleasant.

Share this post


Link to post
Share on other sites
I'll offer £4.50 for that ladle.

Deal! But I need you to do me a favour. We say I've lent you £4,999,999,995.50 that I don't give you and that you will never repay me so that we can tell the public the sale was at £5bn.

Share this post


Link to post
Share on other sites
I no longer believe we are in the usual 7-10 year cyclical boom & bust scenario. What I think may be occuring is something far worse. A structural failure of our financial system. That is "system."

It was once said that debt is good. Deficit accounting began in the late 1700's and has persisted until now. The shifting paradigm will take a lot down with it and what emerges at the other end may not be pleasant.

....are you saying that this is comparable to the collapse of the Roman Empire which plunged the world into the dark ages?

...In that case, bring it on!! ...........OK maybe not.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 399 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.