RBS struggles to seal deal over dispute
Royal Bank of Scotland is struggling to reach a deal with all the investors who allege the lender misled them during a £12 billion (Dh57 billion, $15.6 billion) cash call in 2008, two sources familiar with the situation said.
A trial over the matter had been due to start Monday, but has been adjourned for the past two days as lawyers said the two sides were optimistic they could strike a settlement.
Jonathan Nash, a lawyer for the claimant group, told London’s High Court on Tuesday the majority of shareholders involved in the lawsuit were willing to accept RBS’ settlement offer in principle and there was a “good prospect” of a deal.
However, sources said late on Tuesday that a number of shareholders in the 9,000-strong group suing the bank remained determined to reject RBS’ latest out-of-court settlement offer and take the case to trial.
“They [settlement talks] haven’t gone as expected,” one said.
A court hearing was called for yesterday morning at which both sides were expected to detail any progress made in talks and could call for a further adjournment of the trial.
RBS declined to comment. A spokesman for the investor group did not respond to requests for comment.
RBS almost doubled its out-of-court offer to investors on Sunday from around 43.1 pence to 82 pence per share, sources have told Reuters, in an effort to avert a trial that will rake over events that led to its near collapse and a state bailout at the height of the credit crisis.