NEW YORK (Reuters) - British bank Royal Bank of Scotland RBS.L is expected to name Morgan Stanley MS.N as the lead underwriter for a proposed initial public offering of its U.S. subsidiary, Citizens Financial Group Inc, according to people familiar with the matter.
RBS, under pressure from British regulators to bolster its capital and sell off non-core assets, said in February that it would sell 20 percent to 25 percent of Citizens by the end of 2014 through an initial public offering in New York.
RBS is working with Morgan Stanley to help prepare for the Citizens offering and has also interviewed other banks in recent weeks to add more underwriters, three people familiar with the matter said this week.
The bank has not made any decisions yet, they added, asking not to be identified because the discussions are private.
RBS and Morgan Stanley both declined to comment.
Reporting by Jessica Toonkel, Soyoung Kim