Bradford & Bingley will make an emergency £300m rights issue to strengthen the beleaguered lender's balance sheet.
The rights issue, 16 new ordinary shares for every 25 existing ordinary shares, is at a 48% discount to the 158.75p closing price of Bradford & Bingley shares last night. It marks a stunning back-flip from the bank, which just weeks ago denied it was going to go to shareholders for more capital. “The rights issue we have announced today will strengthen our financial standing, reinforcing our position as one of the better capitalised banks in the UK,” group chief executive Steven Crawshaw says. “The improved financial strength will ensure we are even better placed to pursue our strategy o...
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