5th Dec 2016 07:09
LONDON (Alliance News) - Royal Bank of Scotland Group PLC on Monday said it has set aside GBP800.0 million to settle claims made against the bank by shareholder groups over its 2008 rights issue, which was conducted only months before the bank had to seek a bailout from the UK government at the height of the financial crisis.
RBS said it is willing to pay up to GBP800.0 million to settle claims made by three of the five shareholder groups that have taken action against the bank. RBS said this would represent around 77% of the claims made. The money is covered by existing provisions booked by the bank.
The majority UK taxpayer-owned bank said it will now seek to reach a settlement with the two remaining shareholder groups in the action and will continued to "vigorously" defend itself against any claims which are not settled when they come to trial in March 2017.
"We have been very clear that we wanted to deal with as many of our legacy litigation issues as possible during 2015 and 2016. We are pleased to have reached this agreement and hope that it will be accepted by the remaining claimant group(s) so that this long course of complex and costly litigation can now be concluded," said Ross McEwan, RBS's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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