RBS seeks to sell stake in Bank of China

By Simon Duke for MailOnline
Updated: 19:10 EST, 8 January 2009

Taxpayer-controlled Royal Bank of Scotland has put its £2billion stake in Bank of China up for sale, paving the way for a sweeping clear-out of its overseas businesses.

New boss Stephen Hester is believed to have travelled to Beijing this week to find a buyer for its 4.3 per cent holding in BoC.

A sale would mark the first step in unpicking the sprawling global empire stitched together by his deal-hungry predecessor, Sir Fred Goodwin.

Get rid: RBS boss Stephen Hester is reportedly trying to find a buyer for the bank's stake in Bank of China

Hester, who took the reins in October, is expected to sanction a raft of foreign disposals over the coming months as he attempts to repair the lender's tattered finances.

Offloading its Citizens U.S. subsidiary would go some way to shrinking RBS' £2trillion balance sheet, which needs to be reduced by at least a third, according to analysts.

However, Hester is expected to shelve the protracted auction of the group's insurance wing, which includes Churchill and Direct Line.

An RBS spokesman said: 'We are currently examining all of its investments as part of the strategic review, including our investment in Bank of China.'

Shares in RBS closed 1.6p higher at 50.6p.