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RBS shares up 5 percent on alternative plan to Williams & Glyn sale
February 20, 2017 / 8:21 AM / 9 months ago

RBS shares up 5 percent on alternative plan to Williams & Glyn sale

LONDON (Reuters) - Royal Bank of Scotland Group (RBS.L) shares rose 5 percent on Monday, after the lender said on Friday evening it had proposed abandoning the disposal of its Williams & Glyn business after a seven-year struggle to sell the unit to meet European Union state aid demands.

The logo of the Royal Bank of Scotland (RBS) is seen at an office building in Zurich March 27, 2015. REUTERS/Arnd Wiegmann/File Photo

RBS instead put forward an alternative series of measures, worth around 750 million pounds ($932.48 million), to help newer, smaller “challenger” banks and boost competition among lenders.

Analysts said that removing the obligation to dispose of Williams & Glyn could pave the way for RBS to resume paying dividends, but cautioned that the new proposals did not look too favourable for the taxpayer-backed lender.

“Overall the prospective deal looks better for the ‘eligible challenger banks’ than for RBS,” Joseph Dickerson, analyst at Jefferies, wrote in a research note on Monday.

Reporting by Lawrence White; editing by Jason Neely

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