* Meeting put back to end June from usual May timing
* RBS seeking to cancel UK's Dividend Access Share
March 17 Part-nationalised Royal Bank of
Scotland has delayed its annual shareholders' meeting as
it seeks to cancel a government-owned share that effectively
stops it from paying dividends, sources familiar with the
The bank, 81 percent owned by the government, said it was
considering dates for its annual meeting, which normally takes
place in April or May, at the end of June.
RBS and Britain's finance ministry said last November they
were in advanced talks with the European Commission to free the
bank from the dividend access share - which gives the state
priority over dividends and has been seen as a major obstacle to
RBS, which was rescued by the government through a 45.5
billion pound ($75.7 billion) bailout during the 2008 financial
crisis, would need to negotiate a price for buying its way out
of the arrangement.
UK Financial Investments, the agency which manages Britain's
stakes in RBS and Lloyds Banking Group, said in
November that the share was valued by the government at 1.5
Delaying the meeting would allow talks to possibly conclude
before the shareholder vote. Any deal would have to be approved
by the non-government minority shareholders.
Sources familiar with the negotiations said it was not
certain that RBS will reach an agreement with the Treasury and
European Commission in time to seek approval from shareholders
at a June meeting, but said there was enough of a chance of
doing so to justify pushing the AGM back.