RBS reaches settlement with shareholders

RBS

RBS has finally reached a £200m settlement with investors who say they were duped into handing £12bn to the bank during the financial crisis.

The RBS Shareholders Action Group has voted to accept a 82p a share offer.

The amount is below the 200p-230p a share that investors paid during the fundraising in 2008, when they say RBS lied about its financial health.

A settlement means that the disgraced former chief executive of RBS, Fred Goodwin, will not appear in court.

A spokesman for the RBS Shareholder Action Group said: “The directors met last night to consider the legal advice and took the decision that this matter will not now go to court.”

He declined to comment on whether the decision was unanimous.

Shares in RBS fell 1.1% to 256.85p.

Shortly after the rights issue in 2008, RBS was bailed out with £45bn taxpayers’ money. The state still owns more than 70% of the bank.

In contrast, the government recently sold its last remaining stake in Lloyds, which took over HBOS during the crisis before receiving £20bn of rescue funds from the state.

RBS declined to comment.

[Source:- bbc]