RBS reassures investors over Fortis
Royal Bank of Scotland Group PLC attempted to reassure investors that it will not be adversely impacted by the government-backed rescue of Fortis NV as the British bank's shares dropped almost 6 per cent.
By Agencies |
LONDON: Royal Bank of Scotland Group PLC attempted to reassure investors on Tuesday that it will not be adversely impacted by the government-backed rescue of Fortis NV as the British bank's shares dropped almost 6 per cent.
Fortis was part of the RBS-led consortium last year that bought Dutch bank ABN Amro Holding NV for euro72 billion.
Analysts have warned that even though the Scottish bank's finances seem secure, it could fall victim to a lack of confidence in the current financial climate.
RBS said that the part-nationalization of Fortis by the Belgian, Dutch and Luxembourg governments, which requires Fortis to sell ABN Amro units, will not hurt the Dutch bank assets that RBS has bought or its planned integration of them.
RBS noted that Fortis has already paid in full in cash for its ABN Amro stake, which is held in RFS Holdings, the consortium that also comprises Banco Santander SA.
``Should it sell this holding the financial consequences would lie with Fortis,'' RBS said in a statement to the London Stock Exchange.
``The sale of Fortis interests in RFS Holdings wouldn't affect the integration benefits envisaged by RBS, nor would it affect the businesses to be retained by RBS,'' it added.
RBS shares were 5.8 per cent lower at 170.5 pence (US$3.09) in midmorning trade on the London Stock Exchange.
Fortis was part of the RBS-led consortium last year that bought Dutch bank ABN Amro Holding NV for euro72 billion.
Analysts have warned that even though the Scottish bank's finances seem secure, it could fall victim to a lack of confidence in the current financial climate.
RBS said that the part-nationalization of Fortis by the Belgian, Dutch and Luxembourg governments, which requires Fortis to sell ABN Amro units, will not hurt the Dutch bank assets that RBS has bought or its planned integration of them.
RBS noted that Fortis has already paid in full in cash for its ABN Amro stake, which is held in RFS Holdings, the consortium that also comprises Banco Santander SA.
``Should it sell this holding the financial consequences would lie with Fortis,'' RBS said in a statement to the London Stock Exchange.
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``The sale of Fortis interests in RFS Holdings wouldn't affect the integration benefits envisaged by RBS, nor would it affect the businesses to be retained by RBS,'' it added.
RBS shares were 5.8 per cent lower at 170.5 pence (US$3.09) in midmorning trade on the London Stock Exchange.
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