Could RBS and BoA agree to share LaSalle?
Today’s judgment makes it less likely. RBS and BoA have held “amicable” discussions about a carve-up but they floundered on price. There are now no obstacles to BoA pressing ahead with its LaSalle acquisition and, assuming US giant does want the entire group, there is no pressure for it to negotiate with RBS. However, BoA may still decide to sell certain LaSalle assets to RBS. RBS has made it clear that it prefers the commercial operations while BoA is known to want the 141 retail branches. An agreement is believed to have been reached in principle, before stumbling over price. Are there any other issues the consortium faces? The RBS consortium is still proposing to undertake the largest cash financing in history – of €56bn. Fortis raised €2bn in the bond markets and a further €980m last week from the sale of its 50pc stake in Spanish savings bank La Caixa. The Belgian bank, which is capitalised at just €40bn, plans to raise a further €13bn through a rights issue and another €7bn from
