Huffpost UK uk

'Deal Close' To Sell RBS Shares At A Loss To Middle East Investors, Reports Say

Posted: Updated:
Print Article

Shares in the Royal Bank of Scotland rose by more than 6% on Tuesday on rumours that the UK government may be about to sell a stake in the bank to overseas investors.

The BBC reported that up to a third of the government's 82% stake in RBS could be up for sale to sovereign wealth funds in Abu Dhabi.

The deal could see the Treasury sell its stake at a loss, raising the prospect of angry protests if the exchange does go through.

Sky's City editor Mark Kleinman said the proposed price for the sale could be around 32p per share - far less than the 49.9p that the government paid in 2008-9.

In total the government has £45.5bn invested in RBS, which was brought to the point of bankruptcy after its takeover of ABN Amro.

The news channel reported talks between the Treasury, UK Financial Investments and the Abu Dhabi royal family had been underway for "months".

The Reuters news agency also said that the talks with the Abu Dhabi royals were underway.

It quoted a source as saying that "it is too early to say" whether the family will invest in RBS.

Chris Leslie MP, Labour’s Shadow Financial Secretary to the Treasury, said yesterday: “It’s vital that taxpayers get back the money they invested in RBS.

"We mustn’t have another rushed sale by George Osborne, like the loss-making sell off of Northern Rock, which leaves the British taxpayer hundreds of millions of pounds out of pocket."

Around the Web

Royal Bank of Scotland Share Chat - Chat About RBS Shares ...

ROYAL BK SCOTL GR Share Price | RBS.L- Yahoo! UK & Ireland ...

Taxpayers lose £900m as RBS shares fall - Telegraph

Royal Bank of Scotland Group share price RBS - UK share prices ...

RBS Sharedealing: Online Share Dealing, RBS Direct Trader ...

RBS shares rise on talk of possible Abu Dhabi stake buy

European shares up; RBS gains on stake sale talk

RBS Rate Traders Sat With Libor Setter, Fired Employee Tan Says

European Stocks Advance for a Third Day as RBS Rallies

Australia Shares End Up 0.9% As Cyclicals Rise On Bernanke's Comments

European Shares Extend Gains, Led by RBS