RBS to announce cash boost

0 Comments | AFP, April, 2008

LONDON (AFP) — The Royal Bank of Scotland said Monday it would ask shareholders for a cash boost, following reports that it was to announce fresh losses linked to the credit crunch and its ABN Amro takeover.

"The Royal Bank of Scotland Group plc confirms that it is considering a rights issue," RBS said in a brief statement.

Britain's second largest bank gave no details about the exact amount and timing of the cash call but said it would make a further announcement "in due course."

Media reported that RBS was to launch a rights issue for more than 10 billion pounds (12.6 billion euros, 19.9 billion dollars) on Tuesday, after being hit by subprime-linked losses plus surging costs from last year's consortium takeover of Dutch group ABN Amro.

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