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Goodwin may still appear in court

RBS shareholder talks ‘break down without deal’

Ross McEwan

McEwan: more losses (photo by Terry Murden)

Fred Goodwin may still be brought to court to account for the £12 billion RBS shares issue after talks with investors were said to have collapsed without agreement.

The bank has been in frantic 11th hour negotiations with lawyers and others representing thousands of small shareholders.

But sources say Ross McEwan, RBS’s chief executive, and directors of the RBoS Shareholder Action Group failed to reach an agreement today after Mr McEwan refused to increase the offer.

The action group said earlier this week that a majority of its 9,000 members would accept an 82p-a-share deal as compensation in their claim that they were misled over the share issue in 2008.

But a small group are digging in their heels and seeking to raise £7m to fund their claim through the anticipated 14-week case. They are said to have so far raised £4m, according to Sky News.

RBS was hoping to get the support of at least 70% of the claim by value which would have made it binding upon all claimants.

The trial is now set to go ahead next Wednesday though Mr Goodwin’s appearance will be rescheduled from General Election day, the original date for him to give evidence.

The judge in the case has already adjourned it three times amid ongoing settlement talks.

Sir Tom McKillop, the former RBS chairman, and Johnny Cameron, the former head of the investment bank are also named as defendants in the case.

 

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