Royal Bank of Scotland Group (LON:RBS) has held last-ditch talks with investors suing the bank over its disastrous rights issue at the height of the financial crisis, Sky News has revealed. The report comes ahead of the trial which is scheduled to start later this month.
RBS’ share price has climbed into positive territory in today’s session, having added 0.66 percent to 260.40p as of 10:10 BST, outperforming the broader London market, with the benchmark FTSE 100 index currently 0.05 percent better off at 7,439.00 points. The group’s shares have added more than 23 percent to their value over the past year, and are up by just under 16 percent in the year-to-date.
Sky News reported yesterday that lawyers for RBS had met representatives of the final remaining shareholder action group suing the lender over its £12-billion rights issue in 2008. Sources familiar with the matter told the newswire that the meeting, which took place last Tuesday, had concluded with little prospect of a settlement.
“They are miles apart in terms of agreeing a deal, and time is running out,” Sky News quoted one insider as saying.
The bailed-out lender is not thought to have used the meeting to raise its settlement offer above the 43.5p-per-share deal it agreed to pay some members of the action group last month. Others meanwhile are reportedly willing to settle but are said to have been holding out for a deal worth at least 92p-per-share, or just under half of what they paid in the ill-fated rights issue.
RBS has already reached settlements with four other claimant groups in recent months, and has set aside up to £800 million to cover the shareholders’ legal claims.