Written question asked by Lord Oakeshott of Seagrove Bay (Liberal Democrat), in the House of Lords. It was answered by Lord Myners (Labour) on Tuesday, 2 February 2010.

Banks: Royal Bank of Scotland

Question: To ask Her Majesty's Government in relation to the Royal Bank of Scotland's (RBS) financing of the takeover bid by Kraft for Cadbury, (a) what isthe amount of the loan facility, (b) what fee is receivable by RBS, (c) what is the interest rate, (d) whether RBS consulted or informed UK Financial Investments, HM Treasury or the Department for Business, Innovation and Skills before the financing was signed, and (e) what representations they have made to RBS on financing hostile takeover bids for British companies in future.

Answer: The Government's shareholdings in the Royal Bank of Scotland (RBS) are managed on a commercial and arm's length basis by UK Financial Investments Ltd (UKFI). UKFI's objective is to develop and execute a strategy for disposing of the Government's investment in an active and orderly way in the context of protecting and creating value for the taxpayer as shareholder, paying due regard to the maintenance of financial stability, and to acting in a way that promotes competition. The Government are clear that British banks are best owned and managed commercially. Business decisions are a matter for the boards of banks and their professional management.

Secondary information

Type: Written question
Reference: 1442; 717 c15-6WA
Session: 2009-10
Subjects: Fees and charges Interest rates Loans Takeovers Treasury Royal Bank of Scotland Department for Business, Innovation and Skills UK Financial Investments Cadbury Kraft Foods
Link: View this Written question on www.publications.parliament.uk