RBS rights issue take-up seen near 95 percent

LONDON (Reuters) - Royal Bank of Scotland is expected to have received a strong take-up for its 12 billion pound rights issue by its close on Friday, helping it survive a scare that the record offer could fail.

About 95 percent of shareholders are expected to have signed up for the offer, according to several bankers, dealers and analysts.

RBS declined to comment. The subscription level is expected to be released on Monday, when underwriters will place the leftover "rump" of shares. A 95 percent take-up would see 600 million pounds being placed.

RBS shares fell 5.2 percent to 245.5 pence on Friday. All bank shares dropped after gloomy U.S. economic data revived concern about slowing U.S. and European economies. The DJ Europe Bank index tumbled 3.5 percent.

RBS shares have fallen 10 percent since the rights period began on May 15, falling as low as 219.5p on Monday, on concern there could be a big rump to be placed, the sale of shares on behalf of American Depository Receipt (ADR) holders who couldn't take up the rights, and other technical factors.

But they have bounced 7 percent since Monday as fears eased that the offer would fail.

The offer is underwritten by UBS, Merrill Lynch and Goldman Sachs.

"All the uncertainties about the rights issue are out of the way, so on the technical side things could be getting better, but there's still the issue that the UK could be going into a serious slowdown," said Philip Richards, analyst at Execution.

Banks face a tough economic outlook and several more are due to follow RBS in tapping investors for cash to rebuild their balance sheet. Bradford & Bingley had to reprice its rights issue earlier this week, and shares in HBOS have faced selling pressure ahead of its offer.