Bradford & Bingley has been forced to tap up its largest shareholders for additional capital after US private equity firm TPG dropped plans to inject £179m in the ailing lender.
TPG abandoned its deal to snap a 23% stake in B&B late last night after it emerged ratings agency Moody's was about to downgrade the bank for the second time in just over a month. The centrepiece of B&B’s £400m fundraising effort unveiled on 2 June, the TPG capital plan had a termination clause in the event the lender was downgraded twice. B&B this morning confirmed it will push on with a full £400m rights issue – backed by large shareholders M&G, Legal & General, Insight and Standard Life. The enlarged rights issue has an unchanged 55p subscription price. TPG’s exit throws spotlight ...
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