Wednesday, December 13, 2006
RBS mulling large US acquisition in new year – report
Royal Bank of Scotland might be mulling a large US acquisition in the new year, according to sources cited by a report in The Scotsman.
The item cited sources at the UK-listed bank for the claim.
The item went on to mention a plan referred to as ‘Project S’, which, according to sources familiar with the situation will involve senior staff within the first quarter of next year.
A Royal Bank of Scotland (RBS) spokesperson this week repeated that the bank is not considering any large acquisitions. Chief executive Fred Goodwin also said last week that the group has no need for large buys at present.
According to the report, RBS is expected to continue making smaller acquisitions, such as its recent GBP 95m (EUR 140m) acquisition of 10 GreatBanc branches in Chicago, US. US acquisitions would be attractive to RBS, given the low value of the US dollar compared to sterling. The item commented that RBS might regard a substantial acquisition as a defence against potential hostile bids. RBS’ share price is widely considered to undervalue the company, the item added. RBS has a current market capitalisation of GBP 62.99bn (EUR 93.47m).
Source The Scotsman
The item cited sources at the UK-listed bank for the claim.
The item went on to mention a plan referred to as ‘Project S’, which, according to sources familiar with the situation will involve senior staff within the first quarter of next year.
A Royal Bank of Scotland (RBS) spokesperson this week repeated that the bank is not considering any large acquisitions. Chief executive Fred Goodwin also said last week that the group has no need for large buys at present.
According to the report, RBS is expected to continue making smaller acquisitions, such as its recent GBP 95m (EUR 140m) acquisition of 10 GreatBanc branches in Chicago, US. US acquisitions would be attractive to RBS, given the low value of the US dollar compared to sterling. The item commented that RBS might regard a substantial acquisition as a defence against potential hostile bids. RBS’ share price is widely considered to undervalue the company, the item added. RBS has a current market capitalisation of GBP 62.99bn (EUR 93.47m).
Source The Scotsman
