STOCKS NEWS UK-RBS slumps on disposal concerns
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Europe [STXNEWS/EU] Real-time Equity News [E] [GB/EQUITY]
UK [STXNEWS/UK] Stocks on the move [HOT-RTRS]
UK smallcaps [STX/UKSC] UK smallcaps news [GB/SMALL]
09:04GMT 02Nov2009-RBS slumps on disposal concerns
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Shares in Royal Bank of Scotland (RBS.L) slump 6 percent, topping the FTSE 100 fallers, after the lender said EU authorities would order more disposals than it had expected in return for approval of state aid RBS received after coming close to collapse last year.
"The extent of the disposals is greater than expected, which is not positive," says an analyst.
Assets earmarked for sale are likely to include RBS' prized insurance arm and some investment banking operations, in a deal that could be announced as early as Tuesday, sources told Reuters last week. [ID:nLV80446]
"While details remain sketchy, our reading of the "new" plan for RBS is fairly valuation neutral, but with increased execution risk and raising further questions about the quality of its balance sheet," said Jonathan Pierce, analyst at Credit Suisse.
To read more, please click on [ID:nL2281331] or [RBS.L-RTRS-LEN]
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08:45GMT 02Nov2009-Higher Moto stake lifts Randgold shares
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Shares in Randgold Resources (RRS.L) rise 2.5 percent, outperforming the UK mining index .FTNMX1770, after it and fellow African miner AngloGold Ashanti (ANGJ.J) agree to buy an additional 20 percent in the Moto gold project in the Democratic Republic of Congo for about $113.6 million.
"The acquisition enhances Randgold's exposure to the project and locks the government into playing ball," says Arbuthnot Securities in a note. "As such, this should be viewed positively by the market."
To see more on this story please click on [ID:nL2269737]
Reuters messaging rm://julie.crust.thomsonreuters.com@reuters.net
08:45 GMT 02Nov2009-UK small caps fall 0.3 pct early
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The FTSE Small Cap index .FTSC falls 0.3 percent in early trade, underperforming both the blue chips .FTSE and the midcaps .FTMC, which add 0.4 percent and 0.3 percent, respectively.
Quintain Estates & Development (QED.L) falls 6.2 percent after the real estate developer confirms it is considering an equity issue, although no formal decision has been made. Weekend press reports suggested it was looking to raise 180 million pounds via a rights issue.
Jubilee Platinum (JLP.L) puts on 4.7 percent. The exploration company is to enter into a strategic alliance to smelt Sylvania Resources' (SLV.L) platinum group metal concentrates from its tailings retreatment projects that are not tied into other contracts.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
