Thursday 22 February 2018

RBS case investors settle for £200m

Ex-RBS CEO Fred Goodwin
Ex-RBS CEO Fred Goodwin

Patrick Gower and Jeremy Hodges

Investors suing Royal Bank of Scotland (RBS) over a 2008 rights offering have accepted a £200m (€228m) settlement offer, ending weeks of uncertainty over a London court case that threatened to dredge up the bank's embarrassing bailout during the global financial crisis.

Shareholders who had held out for an improved offer finally accepted RBS's 82 pence per share proposal during a Monday evening vote, a spokesman for the group said yesterday. The agreement is likely to be approved today by a judge.

The last week has been filled with speculation about holdout investors' attempts to raise enough money to fight on while larger shareholders and funders were happy with the bank's offer.

The confusion kept the possibility alive of seeing the company's former CEO Fred Goodwin give evidence about the difficult period for the bank.

The claimants argued that the bank deliberately concealed its financial weaknesses over its £12bn emergency rights offering.

The bank disputed that it had covered up any of its actions, saying the rights-issue prospectus included all the information investors needed, and the claimants were overlooking how volatile markets were in 2008. A spokesman for RBS declined to comment. (Bloomberg)

Irish Independent

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