Investors and analysts are divided over the benefits of a massive potential rights offering by Royal Bank of Scotland following reports that the UK bank is planning to raise up to £12bn (€15.1bn) to shore up its balance sheet.

Shares in RBS surged as much as 4.9% to 384p this morning from yesterday's 366p close before slipping back to 361.75p by 09:05 GMT on the back of press reports suggesting the bank is poised to announce a £5bn to £12bn fundraising plan.