RBS 'informs unsuccessful bidders' in upcoming branch sale

30 May 2013

The Royal Bank of Scotland (RBS) has started to cut bidders for more than 315 of its branches as it attempts to secure a sale as part of its restructuring programme.

Sky News reports the bank has informed a number of bidders that they have been unsuccessful as it moves forwards with the necessary deal.

This includes a joint bid from Apollo Management and JC Flowers, two giant buyout firms that tabled a bid last year.

A deal had previously been reached with Santander but the Spanish bank pulled out citing concerns about the company's IT system.

RBS suffered an outage in its systems in 2012 meaning many customers lost access to their bank accounts.

Lloyds is also processing a similar deal but is finding similar difficulties. The bank had an initial agreement with the Co-operative Group but the deal fell through, with the Co-operative citing the continued economic downturn as well as tougher regulatory environment as the main reasons.

By Tony Aynsley

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