RBS rights issue over 90% take up June 8th, 2008

The Royal Bank of Scotland (RBS) will annouce that over 90% of its shareholders have signed up for its £12bn rights issue. With growing negativity in the banking sector following recent bad news, including a poor set of results from the Bradford & Bingley, there had been concerns that investors would shy away from the rights issue.

The remaining shares not taken up by existing shareholders will be purchased by the underwriting banks - Goldman Sachs, Merrill Lynch and UBS, at a total cost estimated to be around £600m.

RBS shares rallied last week and are likely to be up again on the news that the issue has received such a high take up in what are difficult trading times.