Pass it on

In an auction, the withdrawal of a favourite is usually an unmitigated boon to the other contestants. Not so in the race for Royal Bank of Scotland’s insurance arm, which Generali has quit. According to a person familiar with the situation, the Italian insurer baulked at the £7bn or so that the UK bank is demanding for the business, which owns the Churchill and Direct Line brands. The Italians’ retreat may ring alarm bells among shareholders in rival bidders. True, it removes one big obstacle t...