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  • valueguy66 valueguy66 Mar 28, 2012 11:35 PM Flag


    The e & g's would restart in 2013 as per the agreement. A year later. However if the m,n etc. start in June 2012 expect a pop in the price of the e&g's to about $17.

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    • The operative word here is "if".

    • Thanks for the correction on the RBS NV Tier 1.

      Here is a fixed income note from BAML to whet your appetite my fellor Tier 1 junkies.

      Sale of RBS stake to SWF
      Bottom line
      The BBC is reporting widely that the UK Government is preparing to sell ‘as much as a third’ of its 82% stake in RBS. The negotiations are reportedly with Abu Dhabi sovereign wealth funds.

      The sale to a sovereign wealth fund would in our view confirm that the UK Government wants RBS to be a ‘normal’ bank, as opposed to a tool of Government policy. This is important for the investment case for the bank’s perps (T1) bonds.

      Once we accept that the bank is heading for normality, it means that they have to switch their perps back on asap. Switching on the bonds would also be a necessary condition precedent to any dividend payment to shareholders. Overweight-30% the 4.243% €T1 at 56.

      Issues to consider
      􀂄 The sale could be potentially loss-making (shares currently trading at around 28p versus the 50p the Government bought them at). We would be hopeful the UK Government could cut a better deal than implied by those bald prices.
      􀂄 A deal is not imminent but could happen before Christmas, according to the BBC.
      􀂄 The Treasury has apparently countered this by saying it will stick to its plans to return RBS to the private sector when it delivers value.

11.36+0.09(+0.80%)12:43 PMEDT