Warren Buffett may buy Direct Line

By DAILY MAIL REPORTER
Updated:

 

Billionaire investment guru Warren Buffett is reported to be among several potential buyers for Direct Line.

Warren Buffett

Royal Bank of Scotland must sell the insurer to satisfy European Commission demands that those institutions that received State aid during the credit crunch should shrink their operations once the crisis has passed to avoid grabbing an unfair competitive advantage.

It is understood that RBS had planned to float Direct Line on the stock market, but that heavy payouts on car accidents have made a quick sale more attractive.

RBS would not comment last night. Direct Line, known for its red telephone symbol, revolutionised the motor insurance business in the Eighties.

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