RBS in talks with government to resume dividends

17th Mar 2014 09:20

Royal Bank of Scotland (RBS) is in advanced talks with the UK government to resume paying dividends, according to the Financial Times.The lender, which is 81%-state owned after being bailed by the government in 2008, has postponed its annual general meeting until the end of June due to the negotiations. The deal would be subject to approval by the non-government-owned minority shareholders.The government acquired a dividend access share (DAS) in RBS through the terms of the bailout, which gave the state rights to an enhanced dividend and made the bank less attractive to private investors.RBS has been in talks with the government and the European Commission since last year to free itself from the DAS.The bank was unable to be reached for comment.RD