Wednesday tips round up: Royal Bank of Scotland, Shire

5th Aug 2015 11:41

(ShareCast News) - The Times' Tempus said investors should buy into Royal Bank of Scotland as its strong balance sheet should allow eventual returns.The debate over whether the government will get back the 502p per share it paid back in 2008 for Royal Bank of Scotland is pointless, Tempus said.There is little point in investors sitting on their hands until RBS shares reach a hypothetical £5 figure, because they may not, the column said.RBS has one of the strongest balance sheets in the sector, with a common equity tier 1 ratio at 12.3%, and the bank has said it would return excess capital to investors.Tempus said the company's share sale should focus attention on RBS to shares' benefit.The Financial Times' Lex column said Irish firm Shire's offer to buy Baxalta puts the American pharma company in play for other suitors.Allergan, which is like Shire also based in Ireland, could be another suitor for Baxalta, Lex said, as could Canada's Valeant.There is a reasonable fit between Shire and Baxalta, Lex said, but ultimately taxes are central to the deal Irish headquarters provide tax benefits.So far Baxalta has been cool to the offer, Lex said, and suggested it better idea could be to just find a partner with a low tax rate.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only and not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.