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RBS
has already offered almost 1 billion pounds ($1.3 billion) to
settle investor allegations that it misled them. If it reaches a
deal, RBS will avoid a trial that would rake over its near
collapse and force former chief executive Fred Goodwin to
testify.
Judge Robert Hildyard on Wednesday adjourned proceedings for the
third time to June 7 after days of intense talks failed to yield
an out-of-court settlement. He ordered both sides to notify him
of any deal by June 1 or face trial.
"We must have certainty one way or another ... and that must be
made clear," Hildyard told London's High Court. The trial had
been due to begin on Monday.
RBS, which is still more than 70 percent state owned, denies any
wrongdoing and says former executives did not act illegally.
Jonathan Nash, a lawyer for the claimants, said that progress
"remains good" and he was hopeful of a settlement.
Nash blamed logistical problems reaching "a small number" of
shareholders, some of whom are elderly, for the delay and said
some of their addresses did not appear to be correct.
Sources told Reuters late on Tuesday that a number of investors
remained determined to take the case to trial, partly to see
Goodwin held to account for decisions which RBS's current
management says were responsible for losses it suffered.
A spokesman for the investor group did not respond to requests
for comment. RBS declined to comment.
RBS almost doubled its out-of-court offer to investors on Sunday
from around 43.1 pence to 82 pence per share, sources told
Reuters. The offer - set to cost RBS around 200 million pounds -
remains well below the 200 to 230 pence at which shareholders
bought RBS shares in 2008.
Investors representing 87 percent of the original 4 billion
pound damages claim have already settled..
But the remaining group includes thousands of current and former
RBS employees. It alleges former executives hid over-stretched
finances and failed to disclose that the regulator had ordered
RBS to raise cash in 2008.
Months later, the government stepped in with a record 45.8
billion pound bank bailout. Shareholders lost around 80 percent
of their investments - and some their livelihoods as RBS cut
jobs as part of a major restructuring.
(Additional reporting by Lawrence White; Editing by Rachel
Armstrong/Mark Potter/Alexander Smith)
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