Royal Bank of Scotland (RBS) shares have plummeted despite a strong early surge after the group confirmed it is considering a rights issue which could provide up to £12bn to strengthen its capital base.
In a statement to the stock exchange this morning, the bank says: “Following its statement on Friday 18 April 2008 and recent speculation The Royal Bank of Scotland Group plc confirms that it is considering a Rights Issue.” RBS shares were up by as much as 5% earlier this morning, but have dived to currently sit 4.68% lower to 372.25. The group, which is widely expected to signal plans to offload its insurance arms Direct Line and Churchill, says it will make a further announcement in “due course”. RBS is also rumoured to be on the verge of announcing the £3.5bn sale of stock leasing ...
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