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...
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