Bradford & Bingley shares are currently trading at a 38% discount to its 55p rights issue price after another disastrous morning trading session.
The lender’s share price has fallen more than 18% this morning to 34.25p, more than 90% lower than this time last year.
B&B’s price crash has damaged its hopes of raising the full £400m in the rights issue; with underwriters more than likely to bear the brunt of the decline.
Large B&B shareholders – Standard Life, Legal & General, Prudential and Insight – are among those feeling the full effects of the plummeting price, after committing up to £150m in the revised rights offer.
Private equity firm TPG’s decision to pull out of a £179m investment on Friday exacerbated the already fragile lender's plight, leading a City analyst to label B&B’s shares 'worthless'.IFAonline
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October