The Spanish bank which owns half of Direct Line in this country wants to buy the remainder of the business. Línea Directa is a 50/50 joint venture between Bankinter and the Royal Bank of Scotland (RBS).
Experts are predicting a fierce battle as RBS sells off all or part of its insurance business, with more than 15 parties having already expressed interest, and more likely to come forward. The bank, which also owns Churchill Insurance, hopes the move will boost its capital by some £4 billion.
Línea Directa, the Spanish branch of the UK's Direct Line insurance company, began operations in October 1995 and now claims to be this country's largest direct car insurer. It has around 1.45 million clients and is reported to control about five per cent of the market. Bankinter is understood to have approached RBS's advisors at the global investment bank Goldman Sachs and offered to buy the remaining half of Línea Directa. Their bid is understood to value the business at just under 900 million euros. Potential bidders for RBS's insurance interests were expected to receive an information memorandum on the auction from Goldman and Merrill Lynch during this week.

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