Thursday, 8 June 2017

RBS trial called off after investors agree deal

The trial in a case brought by thousands of shareholders against Royal Bank of Scotland over a 2008 rights issue will not go ahead after the bulk of investors accepted a settlement offer.
A judge agreed to "vacate" proceedings - which would have seen former boss Fred Goodwin give evidence - after 87% of the claimants "by value" reached agreement with the state-backed bank.

Jonathan Nash QC, representing the investors, said it was anticipated that the remaining undecided 13% would accept the offer.

However the judge, Mr Justice Hildyard, left the door open for the restoration of the hearing should they decide they still wish to pursue the case in court - and have the means to do so.

He set a deadline for July 28 for any application to be made.

RBS said: "None of the outstanding claimants have indicated any intention to continue the claim."

However, businessman Neil Mitchell - who earlier this week said sufficient funds had been raised by a group of investors to press ahead - said possibilities were still being explored.

The settlement between RBS and the main investor group - first reported a day earlier by Sky News - should bring to an end the long-running legal case.

It comes after a last-minute offer of 82p-a-share by the bank, that will cost it £200m, on the day proceedings were due to start. That was followed by weeks of back-and-forth negotiations.

SKY     News.