* Settlement talks to continue on Wednesday - sources
* Former RBS CEO Goodwin scheduled to testify in June
* Bank has already settled with majority of claimant groups
By Andrew MacAskill
LONDON, May 24 Royal Bank of Scotland is
struggling to reach a deal with all the investors who allege the
lender misled them during a 12 billion pound ($15.6 billion)
cash call in 2008, two sources familiar with the situation said.
A trial over the matter had been due to start Monday, but
has been adjourned for the past two days as lawyers said the two
sides were optimistic they could strike a settlement.
Jonathan Nash, a lawyer for the claimant group, told
London's High Court on Tuesday the majority of shareholders
involved in the lawsuit were willing to accept RBS's settlement
offer in principle and there was a "good prospect" of a deal.
However, sources said late on Tuesday that a number of
shareholders in the 9,000-strong group suing the bank remained
determined to reject RBS's latest out-of-court settlement offer
and take the case to trial.
"They (settlement talks) haven't gone as expected," one
A court hearing has been called for Wednesday morning at
which both sides will detail any progress made in talks and
could call for a further adjournment of the trial.
RBS declined to comment.
A spokesman for the investor group did not respond to
requests for comment.
RBS almost doubled its out-of-court offer to investors on
Sunday from around 43.1 pence to 82 pence per share, sources
have told Reuters, in an effort to avert a trial that will rake
over events that led to its near collapse and a state bailout at
the height of the credit crisis.
The offer - set to cost RBS tens of millions of pounds - is
below the 200 to 230 pence per share at which shareholders
bought RBS shares in 2008 and denies investors the prospect of
seeing the bank's former CEO Fred Goodwin cross-examined in
Goodwin came to be seen as a symbol of banker recklessness
during the financial crisis and has rarely appeared in public
since he left the bank.
RBS, which remains more than 70 percent state owned, denies
any wrongdoing and says its former executives did not act
Investors representing 87 percent of the original 4 billion
pound damages claim have already settled their case.
The remaining group, which includes thousands of current and
former RBS employees, alleges RBS's former executives
deliberately hid over-stretched finances and failed to disclose
that the regulator had ordered RBS to raise cash when it
launched its rights issue in 2008.
Just months later, the government was forced to step in with
a 45.8 billion pound taxpayer-funded bailout, the largest bank
rescue in history. Shareholders lost around 80 percent of their
($1 = 0.7717 pounds)
(Writing by Kirstin Ridley; Editing by Rachel Armstrong and