Friday, Apr 18, 2008
RBS has consistently indicated that it would not have to do a rights issue.
TELEGRAPH UK: Sir Fred Goodwin's job as chief executive of Royal Bank of Scotland looked under threat last night following revelations that the lender is planning a rights issue of up to £12bn to shore up its weakened balance sheet.
RBS has decided to tap shareholders for capital due to worsening sub-prime writedowns and its already fragile tier one position, which makes it the most leveraged of Europe's banks. Goldman Sachs and Merrill Lynch are arranging the rights issue and RBS wants it fully underwritten.Analysts estimate that RBS needs to raise £5bn-£12bn to repair its balance sheet and also expect a dividend cut.
Posted by chris @ 04:07 AM (119 views) Add Comment
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