RBS legal cases delay sale of state’s shares

Tim Wallace
Follow Tim
THE RE-PRIVATISATION of RBS has been delayed in part by the bank’s impending legal cases, City A.M. understands.

Officials at UK Financial Investments have been particularly concerned by the ongoing legal battle between the bank and a range of shareholders, who claim they were misled in the 2008 rights issue.

As well as leaving unknown costs hanging over the bank, officials are also understood to be concerned that big investors may be less likely to buy the newly sold stock if they are fighting the bank in court. The case is due in court in December 2016.

Firms like Legal and General and Prudential are involved in the case, but dismissed UKFI’s worries, as their fund managers have the freedom to choose where to invest.

UKFI declined to comment.

George Osborne is expected to consider his options on the sale of RBS shares over the coming weeks.

Related articles