Royal Bank of Scotland Group (LON:RBS) has accelerated talks about a legal settlement with thousands of former investors, weeks before a trial, Sky News has revealed. The report comes after shareholders suing the bailed-out lender over a £12-billion cash call were recently ordered to reveal their source of funding.
RBS’ share price has surged in London in today’s session, having added 1.58 percent to 244.40p as of 14:27 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,426.09 points. The group’s shares have gained more than six percent over the past year, and are up by some nine percent in the year-to-date.
Sky News reported today that RBS had been in negotiations with the RBoS Shareholder Action Group during the last 48 hours in a bid to resolve the final remaining claim relating to the group’s £12-billion cash call in 2008. While talks were understood to be continuing today, one source told the newswire that the chances of a successful resolution before a trial we ‘no better than 50-50’.
The report comes after a judge ordered legal representatives of the shareholders to reveal the source of the group’s funding amid concerns that it would be unable to cover legal expenses if it loses.
RBS is being sued by investors who bought shares in the cash call, before the bank collapsed a few months later. While last year the FTSE 100 lender unveiled an £800-million settlement with the majority of claimants, the RBoS Shareholder Action Group, which represents individuals and some institutions, signalled that it was still seeking £1.2 billion in a court case. The trial is currently scheduled to start in May.