Part-nationalised Royal Bank of Scotland has set a price for the planned stock market listing of its Direct Line insurance business which is at the lower end of analysts' expectations. RBS said on Friday that it would sell the shares at a price between 160 pence and 195 pence per share. The mid-point of that range values the business at 2.66 billion pounds ($4.31 billion).
nalysts had expected a valuation of between 2.5 billion and 3.5 billion pounds on the business, with the majority expecting a value at the bottom of that range. RBS said it expected to set final pricing on or around October 11 for what will be the biggest initial public offering on the London Stock Exchange for over a year. RBS, which is majority-owned by the government after a bailout during the 2008 financial crisis, was told to sell Britain's biggest motor insurer by European Union regulators as a condition for taking state aid. Earlier on Friday, Britain's consumer watchdog called on competition regulators to probe the motor insurance market.
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