Buffett's Berkshire to look at RBS insurance unit

Mon May 5, 2008 12:52am BST

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OMAHA, Nebraska (Reuters) - Warren Buffett said on Sunday his Berkshire Hathaway Inc (BRKa.N)(BRKb.N) insurance and investment company may be "close" to buying a medium-sized British company and "will look" at Royal Bank of Scotland Plc's (RBS.L) possible divestiture of its insurance unit.

Earlier Sunday, the Sunday Express said Buffett was exploring a bid for RBS' Direct Line home and motor insurance business, according to a published report.

Last month, RBS said it was considering the sale of all or part of RBS Insurance, Britain's second-largest general insurer, to shore up its balance sheet. Analysts and bankers have valued the business at up to 8 billion pounds.

Separately, Buffett said the Brazilian real remains the only currency in which Berkshire has a position. Also on currencies, he said he believed the Canadian dollar will be stronger against the U.S. dollar in 10 years.

(Reporting by Jonathan Stempel; Editing by Andre Grenon)

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