LONDON (Thomson Financial) - Royal Bank of Scotland Group Plc. is Tuesday
expected to unveil the largest rights issue in Europe when it announces plans to
raise some 12 billion pounds from shareholders, reported the Financial Times.
The report said the bank was finalising the terms of the rights issue on
Monday. The board of directors was due to meet on Monday night to approve the
offering, said the FT.
The rights issue will allow RBS to rebuild its capital reserves, which have
been stretched by the bank's role in leading the 56 billion pounds break-up bid
for Dutch lender ABN Amro and the turmoil in the credit markets, said the FT.
The report added that RBS was is also expected to announce it has written
down the value of credit assets on its balance sheet by a further 6 billion
pounds -- three times the losses the bank has recognised so far.
r.jones@thomsonreuters.com
rj/ajb
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