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Allstate expected to bid for RBS insurance unit: report
NEW YORK (Reuters) - U.S. insurer Allstate Corp(ALL.N) is expected to submit a bid for Royal Bank of Scotland's (RBS.L) insurance arm, but the offer could be below what the bank expects, the Financial Times website reported on Friday.
The FT did not cite specific sources.
The Edinburgh-based bank has been seeking to sell its insurance arm -- which includes the Direct Line and Churchill brands -- for about 7 billion pounds, but price expectations have dulled in recent weeks and doubts have risen about the likelihood of a sale, as potential bidders have withdrawn and the credit crunch has deepened.
In late July, Allstate's Chief Executive Tom Wilson said he was not prepared to comment on reports of the company's interest in RBS's insurance arm.
The sale of RBS Insurance, Britain's second-largest general insurer, is part of a disposal program to boost the bank's capital ratio.
RBS and Allstate were not immediately available for comment.
(Reporting by Aarthi Sivaraman; Editing by Carol Bishopric)
