RBS's recent ventures, including its partner acquisition of ABN Amro, seem to have left it with a shortage of cash that not even a GBP12 billion rights issue will cover. RBS hopes to make an additional GBP4 billion from the sale of its insurance units, and is even rumored to be selling its share in Tesco Personal Finance. However, given the strength of this business, the move has to be questioned.
7 May 2008