Aviva nears RAC disposal
INSURANCE giant Aviva is close to selling the RAC, the roadside rescue business it owns.
Two private equity firms are in the final stages of bidding for the company, Sky News reported last night.
Three buyout firms had put up final offers several days ago, including BC Partners, Carlyle Group and Clayton Dubilier & Rice.
The sale of RAC, which is being handled by JP Morgan, is expected to net Aviva anywhere up to £900m.
The insurer bought the RAC in 2005 for £1.1bn. Since then, it has packaged off and sold parts of its business, such as the BSM motoring school and Auto Windscreens.
An announcement on the sale is expected by the end of this week at the earliest.
Aviva put the business up for sale earlier this year as part of a wider restructure of the group. The firm declined to comment last night.