RBS shares plummet 7.9 percent amid Fortis talks

The second biggest faller on Britain’s FTSE 100 was RBS, even though the banking giant confirmed reports that there would be no change to the RBS business after the sale of Fortis interests in ABN Amro.

A statement from RBS did little for confidence and reinsurance as shares still slid further after RBS reported ‘Fortis has already paid in full in cash for its shares in RFS Holdings, and should it sell this holding the financial consequences would lie with Fortis.’

The separation of businesses which is due to complete the second half of 2009 allowed ABN Amro to be brought by Fortis and was put in place to help maintain the integrity and strength of ABN Amro,
Fortis the troubled Belgian-Dutch banking giant had €11.2 billion injected in to it by the governments of Luxemburg, Netherlands and Belgium, this would mean the said governments will hold a 49 percent stake in Fortis.

Read the full article: citywired