The bank is still seeking to find an overseas buyer for large parts of the global cash equities arm, which includes sales, trading, research and potentially parts of equity capital markets, the unit that underwrites stock offerings, the two executives said.
"These are activities that don't require a lot of capital, which is attractive as Basel rules come into force," said Neil Smith, a banking analyst at WestLB AG in Dusseldorf. "RBS is selling at exactly the wrong time. It's a good brand and there should be a number of potential buyers."
Hoare Govett
Hoare Govett, RBS's U.K. corporate broking arm, has drawn interest from RBC Capital Markets, Oriel Securities Ltd., Numis Corp. and Jefferies Group Inc., one of the RBS executives said. Spokesmen for RBS, RBC Capital Markets, Jefferies, Oriel Securities and Numis declined to comment.
The bank may combine the unit's 50 employees with some equity sales and research teams to create a bigger U.K. stockbroking group of about 100 people that might be more attractive to a bidder, the executive said.
Investec Plc acquired Evolution Group Plc for 230 million pounds ($352 million) in September to gain the U.K. broker's wealth management arm, William de Broe. Canaccord Financial Inc., Canada's largest non-bank brokerage, agreed to acquire U.K. stockbroker Collins Stewart Hawkpoint Plc in December for 253.5 million pounds.
"Investec was attracted by Evolution's wealth business and Collins Stewart has Hawkpoint and wealth management for Canaccord, implying scale," Melmane said. "RBS buyers will also want a teaser beyond just equities. That may include parts of fixed income."