RBS to announce cash boost
LONDON (AFP) — The Royal Bank of Scotland said Monday it would ask shareholders for a cash boost, following reports that it was to announce fresh losses linked to the credit crunch and its ABN Amro takeover.
"The Royal Bank of Scotland Group plc confirms that it is considering a rights issue," RBS said in a brief statement.
Britain's second largest bank gave no details about the exact amount and timing of the cash call but said it would make a further announcement "in due course."
Media reported that RBS was to launch a rights issue for more than 10 billion pounds (12.6 billion euros, 19.9 billion dollars) on Tuesday, after being hit by subprime-linked losses plus surging costs from last year's consortium takeover of Dutch group ABN Amro.
In addition, The Times newspaper said Monday that RBS would announce the sale of train leasing company Angel Trains for 3.5 billion pounds.
The paper, which cited a source close to RBS, added that the plans were expected to be agreed at a board meeting on Monday.
RBS capital reserves are believed to have been depleted by subprime-related losses and last year's record-breaking consortium takeover of Dutch group ABN Amro for 71 billion euros.
Over the weekend, the Financial Times reported that RBS would reveal about 4.0 billion pounds in fresh losses from the credit crunch in the first quarter of 2008.j/nh
