Royal Bank Of Scotland 'Planning Rights Issue'

[Legal Beagles]

Britain's second-biggest bank is refusing to confirm or deny reports it is planning to ask shareholders for billions of pounds in an attempt to shore up its finances.

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Re: Royal Bank Of Scotland 'Planning Rights Issue'

Britain's second biggest bank will reportedly appeal to shareholders in a multibillion-pound bid to repair its balance sheet.
It is understood Royal Bank of Scotland is looking to launch a rights issue worth anything between £5 billion and £12 billion.
It is suggested that the move is intended to shore up RBS's finances, which have been damaged by bad debt and the continuing effects of the credit crisis.
A rights issue would see existing shareholders at the banking group offered new shares at a possible discount price.
It has the potential of raising billions of pounds for RBS, the owner of NatWest, providing much-needed liquidity.
But it could place further pressure on group chief executive Sir Fred Goodwin.
It has been suggested that shareholders may demand that he steps down in return for their financial injection.
The Daily Telegraph reports that Goldman Sachs and Merrill Lynch are arranging the rights issue and that RBS is expected to reveal details in a trading update next week.
In a statement, a spokesman for the banking group said: "RBS notes recent speculation about a possible rights issue.
"RBS confirms that its Interim Management Report covering trading performance and capital will be made next week