Warren Buffett's Berkshire Hathaway has emerged as a possible bidder for the Royal Bank of Scotland's Direct Line insurance business.
RBS has been ordered by the European Commission to offload its insurance operations by 2013 after the bank was forced to accept Government bailout funds. Berkshire Hathaway, Buffett's investment vehicle, is believed to be a potential bidder for the business, alongside US insurer Allstate. RBS is understood to be considering a sale of the division, which includes the Churchill brand, rather than proceeding with a floation. Direct Line is likely to be offloaded for substantially less than the £4.5bn offer from private-equity firm CVC in 2009.
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