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The UK government is in talks to sell a significant stake in the Royal Bank of Scotland (RBS) to Abu Dhabi, the BBC has learned.

The government, which controls 82% of RBS, has for months been negotiating with Abu Dhabi sovereign wealth funds. It could sell up to a third of its stake to Abu Dhabi, one of the seven states of the United Arab Emirates.

A deal near current prices could see British taxpayers lose almost half their investment as RBS shares closed at 27.8 pence, compared with the state’s average purchase price of 50 pence.

By contrast, AIG, who were bailed out by the US Government to the tune of $150bln, are looking to produce a profit of up to $10bln for US taxpayers, once they repay the remaining $45bln owed, according to an interview on CNBC with CEO Bob Benmosche

More coverage on RBS: BBC, Daily Telegraph, Reuters

Filed under: Paul Blank |