Co-op Bank's biggest hedge fund investor sells almost entire stake

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Aurelius Capital, the largest hedge fund investor in the Co-op Bank, has sold down almost its entire stake to rival Perry Capital.

Aurelius was a key player in the negotiations which eventually culminated in the bank's abandoning of its mutual structure as it plugged a £1.5bn black hole last month. However, the hedge fund decided to sell its bond holdings due to the better-than-expected performance of the debt subsequent to that agreement, according to the FT. Perry Capital is now locked in to the restructuring under current terms, and will also support a legally-binding agreement to back the Co-op's ethical policies, according to the paper. Last month the Co-op agreed to hand investors in its lower tier two b...

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