Royal Bank of Scotland "considering" rights issue

22-04-2008

Royal Bank of Scotland
The Royal Bank of Scotland (RBS) has confirmed it is thinking about a rights issue but has not given away any further details.

The company "is considering a rights issue" and will give details "in due course," the Edinburgh-based bank said in a brief statement to the stock exchange.

According to a report in the Sunday Times over the weekend, the bank will announce write-downs of between £5 billion and £7 billion this week.

The report also said RBS intends to raise between £10 billion and £12 billion through a widely-anticipated rights issue and sell off assets worth as much as £5 billion.

In addition, The Times newspaper said on Monday that RBS would announce the sale of train leasing company Angel Trains for £3.5 billion.

The report also said RBS is expected to say that it is conducting a 'strategic review' of insurance brands Direct Line and Churchill, signaling it is open to offers.

Britain's second largest bank is believed to have depleted reserves due to subprime-related losses and last year's takeover of Dutch group ABN Amro for €71 billion.

Shares in RBS rose 2.8 per cent to 395p in early trading.

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