The Royal Bank of Scotland (RBS) is in advanced negotiations with officials from Abu Dhabi over the possibility of the emirate investing in the financier, it has emerged today (27 March).
Sources with knowledge of the matter have told Reuters that talks between the two parties are now being held at the level of the Abu Dhabi ruling family, with renowned businesswoman Amanda Staveley advising the state's officials on the deal.
However, despite the fact discussions are going on at the highest level, no final agreement is expected to be reached in the near future.
"The talks have been going on for six months and nothing is likely to materialise for the next few months," the insider commented.
In addition, it has not yet been decided which of Abu Dhabi's entities would hold the stake on RBS, but the source confirmed that the emirate's sovereign wealth funds are not yet involved in the negotiations.
Following this news, RBS's share price climbed today and was up 4.4 per cent as of 13:51 BST.
By Tony Aynsley