LONDON (Reuters) - British insurer RSA is sounding out institutional investors to raise as much as 350 million pounds ($585.59 million) in a emergency share placing that would allow it to avoid a rights issue, the Financial Times reported on Saturday.
Citing people familiar with the matter, the newspaper said Stephen Hester - the former RBS (RBS.L) chief who was hired to lead the RSA earlier this month - had approached top institutional investors to win their support for the “quick and easy” route of a share placing.
The newspaper said he was seriously considering the option of raising up to 10 percent of RSA’s equity through a placing, although no decision had yet been taken. It added a full rights issue was still possible and RSA was also looking at disposals.
A spokeswoman for the insurer declined to comment on what she called a “speculative” story. “The review is ongoing, we’ll announce the outcome of that on February 27,” she said.
RSA is reeling from an accounting scandal at its Irish division that left a 200 million pound hole in its finances. The company previously has said it was considering all options to raise capital that could include the sale of business units.
($1 = 0.5977 British pounds)
Reporting by Brenda Goh, editing by David Evans