Private investors who back Royal Bank of Scotland's management to dispose of its insurance arm and integrate its ABN Amro acquisitions efficiently, are being advised to participate in the £12bn rights issue announced this week.

Under the terms of the fundraising, shareholders will be offered 11 new shares for every 18 held, at an issue price of 200p - a 43 per cent discount to yesterday's closing price. Analysts suggest this represents good value on fundamental grounds.