RBS Says U.K. to Buy Majority Stake

By Emily Flynn Vencat

LONDON -- The Royal Bank of Scotland Group (RBS Quote) said Friday the British government will take majority control of the bank -- buying close to a 60% stake -- after its shareholders shunned a stock offering.

RBS, which has indicated it could post its first ever annual loss this year, said investors bought just 0.2% of shares offered to them in a 20 billion pound ($31 billion) government plan to recapitalize the bank. The offer, issued last month, expired on Friday. ...