Government takes 57.9% stake in RBS


Government takes 57.9% stake in RBS
The government will own 57.9 per cent of the Royal Bank of Scotland after shareholders took up a fraction of the bank's open offer.

Shareholders bought just 0.24 per cent of the new RBS shares on offer, leaving the government to pick up the majority, which was expected, as the offer price of 65.5p was around 10p higher than the trading value of the shares.

The government will now become the majority shareholder in the bank, paying around £15 billion for its stake, in addition to £5 billion in preference shares.

The share issue was part of the government's recapitalisation scheme, and was approved by shareholders last week.

Existing shareholders will not receive any dividends until the bank has bought back the preference shares from the Treasury.

The bank had to agree to several other conditions to receive the cash, including restrictions on executive pay and an agreement to continue lending to individuals and businesses.

Last week, RBS committed to keeping overdrafts for small businesses.

The news was welcomed by industry, as there have been complaints that banks have been withdrawing vital overdraft facilities for small firms, in some cases replacing them with more expensive loans.

As of 08:35 BST, RBS shares were trading at 55p.

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Transport / Logistics
Travel / Tourism / Leisure