DJ MARKET TALK: Limited Scope For RBS To Renegotiate Bailout Aid 0703 GMT [Dow Jones]
The scope is limited for Royal Bank of Scotland (RBS.LN) to successfully negotiate improved terms for its participation in the asset protection scheme supported by GBP3B-GBP4B of new equity thinks Shore Capital. Says any reduction in the government's ownership would be seen positively, although without new APS terms or significant tangible net asset benefit, would not be surprised if investor appetite for new equity is subdued. Sees limited impact on its RBS investment case. Keeps at hold. Shares -0.1% at 56p. RBS was not immediately available for comment on its participation in APS.
(ANT) Contact us in London. +44-20-7842-9464 Markettalk.firstname.lastname@example.org
Maybe I am an optimist, but I think a potential offering is good news. It says RBS is operating as an independent entity, and bolsters RBSs case with the EEC/EU and UK. If you want new equity holders, you have to respect equity holders and contributers. That is the only way RBS can build confidence. So I guess I view this as a bullish indicator for RBS and preferred holders.