logo
Share SHARE
FONT-SIZE Plus   Neg

Reports: UK Government In Talks To Sell RBS Stake To Abu Dhabi

The UK government, which has an 82 percent stake in Royal Bank of Scotland Group Plc (RBS.L,RBS), is in talks to sell upto one third of its holding in the lender to Abu Dhabi, reports said.

The government bailed out RBS about three years ago, by investing 45.5 billion pounds, after the lender was driven to the verge of collapse by its purchase of ABN Amro. The UK has been discussing the sale with Abu Dhabi sovereign wealth funds for the past few months.

The shares being sold could vary between 10 percent and one third of the government's stake in RBS. A sale to Abu Dhabi at this time is likely to be unprofitable, as the lender's stock trade at a much lower value than it did when the government bought the stake.

The shares were valued at about 50 pence each when the Treasury bought them. The stock closed at 27.75 pence on Monday.

One positive aspect of the deal would be that a part-sale to Abu Dhabi could trigger the interest of other buyers in the private sector, which in turn could drive up the stock's price to a break-even level.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A California man has filed a lawsuit against McDonald's alleging that the fast food giant is defrauding customers by cramming its mozzarella sticks with filler instead of real cheese. Chris Howe is seeking at least $5 million in damages on behalf of consumers in 42 states and the District of Columbia. The... Jeep, the 4x4 vehicles, which has developed a strong bond with its masters, is aggressively on an expansion mode in its 75th anniversary year. Its fans have always been in love with the famous tag "Go Anywhere, Do Anything." Meat products maker Tyson Foods Inc. (TSN) reported a profit for the first-quarter that increased 49% from last year. It raised its profit outlook for fiscal year 2016 ,but it cut its annual sales guidance.
comments powered by Disqus
Follow RTT