Tuesday newspaper round-up: RBS, Brexit impasse, East Coast rail, FirstGroup

Officials charged with managing the taxpayer’s stake in Royal Bank of Scotland have begun contacting City brokers to gauge interest in a potential share sale, only days after the lender agreed a provisional deal with American prosecutors over the sale of toxic mortgage-backed bonds. UK Government Investments began calling investment banks last week after RBS announced a $4.9 billion settlement on Thursday that cleared what is widely regarded in the City to have been the last hurdle to the state restarting the sale of its 71 per cent holding. - The Times

Theresa May has admitted to Conservative MPs that Brexit negotiations are at an impasse because neither of her current options for a customs deal with the EU will work. The Prime Minister invited all 214 of her backbenchers to Downing Street to explain why she has had to go back to the drawing board in an attempt to find a replacement for the customs union. - Telegraph

Theresa May confronted Jacob Rees-Mogg at a meeting with Tory MPs designed to break the deadlock over Britain’s future customs arrangements with the EU. The pair clashed yesterday over the impact of rival plans on the Irish border, in what witnesses described as the prime minister “sending a tough signal” to hardline Brexiteers that she was not prepared to jeopardise the Union. - The Times

Chris Grayling is expected to make a decision “within days” to end the existing East Coast rail franchise operated by Stagecoach and Virgin Trains. The transport secretary was said to be preparing to either renationalise the London to Edinburgh line or negotiate a “not-for-profit” arrangement with Stagecoach and Virgin Trains before the end of the week. - Guardian

Transport giant FirstGroup is facing a mounting activist campaign to put itself up for sale in the wake of a failed takeover bid from American private equity firm Apollo. The attack comes in a four-page letter from top shareholder West Face Capital that was sent to chairman Wolfhart Hauser on Friday, the latest assault on a major UK company from an activist investor. - Telegraph

Investors must back ‘green’ companies or risk huge losses from climate change, the Bank of England has warned. Efforts to stop global temperatures from climbing to dangerous levels require substantial changes to the structure of the economy, rendering older technologies worthless and rewarding companies that are more environmentally friendly. - Telegraph

Private contractors used excessive restraint on low-risk asylum seekers on a removal flight out of the UK, inspectors have revealed in a damning report. Escort staff were led to believe by dire warnings during a staff briefing that they were dealing with a high-risk group, when the majority of passengers had no history of being disruptive, Her Majesty’s Inspectorate of Prisons (HMIP) said in a report. - Guardian

Management at Centrica came under fire at the company’s annual meeting yesterday as frustrated shareholders demanded answers about the collapse of the British Gas owner’s share price. Investors accused Centrica’s directors of being “too sluggish, too ponderous [to deliver a] positive, sustained return”. - The Times

Struggling Snap will use the incoming data protection crackdown to challenge Facebook, following a series of privacy scandals that has engulfed the social network. The parent company to popular photo-sharing app Snapchat today announced greater data controls for users ahead of the European-wide General Data Protection Regulation (GDPR), which will offer consumers greater privacy when it comes into force on May 25. - Telegraph

Tesla is undergoing a major restructuring as the company battles to sort out its organisational problems and bottlenecks that are holding up production of its latest electric car, putting its financial targets in jeopardy. Elon Musk, the founder of the company, warned of a shake-up during California-based Tesla’s earnings call a fortnight ago. - Telegraph

The Japanese drugs company poised to take over Shire in a £46 billion cash-and-shares deal is facing renewed questions about its strength after a profit forecast was weaker than expected. In full-year results published yesterday, the Osaka-based Takeda said that its operating profit was set to fall to 201 billion yen (£1.35 billion) from Y241.8 billion for the year ahead, behind market forecasts of Y216 billion, amid the prospect of generic competition to a blood cancer drug called Velcade. - The Times

The House of Lords has once again voted to establish a fresh Leveson-style public inquiry into the conduct of the media, overturning a decision made by MPs last week and setting up another showdown with the government. Peers voted by 252 to 213 on Monday evening to back an amendment that called for a full investigation into unlawful conduct by newspapers, misuse of data by social media companies, and relations between the press and the police. - Guardian