UK government may start selling RBS take in 2011
Stephen Hester, the chief executive of Royal Bank of Scotland, has given an interview this weekend in which he stated his belief that the UK government will begin to sell down its 83% stake in Royal Bank of Scotland during 2011. This is the first time there has been any "official" comment regarding the stake although it is known that the UK government is looking to sell the stake at the first opportunity. So could this open Royal Bank of Scotland up to a potential bidder?
It is believed that the 83% stake in the business will be gradually sold down although how this will be achieved is unclear at this moment in time. If the UK government was to sell the stake in one go this could put the company in play and see a potential bidder step up with an opportunistic offer. As a consequence, it is unlikely that the UK government will look to unload the stake in one transaction although we could see a "privatisation" type offer to the public.
Royal Bank of Scotland and Lloyds bank were two of the major casualties in the UK banking arena when the credit crunch hit home. However, whether the government can bail out with a profit for UK taxpayers remains to be seen.
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