Talks with institutions

RBS seeking settlement over £4 billion legal claim

Ross McEwan and Peter de Vink
Ross McEwan and Peter de Vink at Gogarburn after the AGM (by Terry Murden)

Royal Bank of Scotland is expected to provide an update on Friday on discussions with a group of institutional investors over a long-running legal battle.

The bank will reveal another third quarter loss but will also be pressed on progress over the action by shareholders.

It is understood that talks have taken place aimed at settling a claim over its £12 billion rights issue in 2008. 

The cash call was to help fund the bank’s ill-fated acquisition of ABN Amro. It was announced just months before the bank was rescued in a £45bn bailout by taxpayers.

RBS is said to be setting aside money to settle the claim, according to Sky News, which said the bank’s lawyers have spoken to a number of investors, including Aviva, Legal & General and the Universities Superannuation Scheme, about a potential settlement.

A deal could be reached with some of these shareholders within weeks, it said.

Thousands of shareholders are claiming around £4bn in compensation over the rights issue. Among the claimants is the well-known investor Peter De Vink who confronted chief executive Ross McEwan at the AGM in May.

Mr McEwan indicated at the time hat he was considering an out-of-court settlement.


Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.