The City's biggest investment banks forced Bradford & Bingley to slash the price of its rights issue amid fears that demand for the £300m fundraising would be so low they would be left with millions of pounds worth of shares, The Guardian reports.
UBS and Citi, the investment banks underwriting the issue, had agreed to guarantee a price of 82p six weeks ago but told B&B that 55p was more likely to be acceptable to investors. It was also the price at which the US-based private equity firm TPG Capital - previously Texas Pacific - was prepared to pay £179m for a 23% stake in the bank, which announced on 14 May that it was planning the rights issue. A CALL FOR global agreement on preventing manipulation of the crude oil market is to be made by John Hutton, the Business Secretary, at a meeting of G8 energy ministers in Japan this weeke...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes