RBS shares drop in the wake of sale rumours

RBS shares drop in the wake of sale rumours

Shares in RBS (LON:RBS) dropped nearly 2 per cent this morning, following rumours that the Government will start selling off its majority stake in the bank at close of trade today.

UK Financial Investment, which manages the Treasury stakes in RBS and Lloyds, advised by Goldman Sachs, has a small window in which to start the sale. It is likely to be today or early next week, but will depend on the interest of investors – if there is too little, the sale may be delayed until September.

In July’s Emergency Budget, George Osborne announced that the government would start to sell off their 79 percent share in the bank. At today’s price, the sale will be around £2 billion, and represents a significant loss on the 502p average price paid in the £45 billion bailouts of RBS in 2009.