June 3, 2008 / 8:15 AM / 12 years ago

RBS jumps on TCI stakebuild talk, rights nears end

LONDON, June 3 (Reuters) - Shares in Royal Bank of Scotland (RBS.L) jumped over 6 percent on Tuesday as talk circulated that activist investor TCI may be building a stake and as the end of a rights issue trading period nears, dealers said.

Several dealers said there was talk of stakebuilding by TCI, the investor which helped prompt the break-up of Dutch bank ABN AMRO last year. TCI could not immediately be reached. RBS declined to comment.

RBS’s rights issue period ends on Friday, and dealers said the shares appear set to hold above their rights issue offer price of 200 pence and there is optimism they could benefit when the rights period ends, after falling sharply in recent weeks.

By 0800 GMT RBS shares were up 6.6 percent at 241p, the best performing European bank stock. (Reporting by Steve Slater, Dominic Lau, Michael Taylor and Clara Ferreira-Marques)

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