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Shares in B&B plunged with fears for future

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Shares in B&B plunged with fears for future

Written by Bernard Kayden
Monday, 07 July 2008
Shares in Bradford & Bingley dived to 11% yesterday after Texas Pacific Group, a US private equity house, turned its back on it. London (Online-Unsecured-loans) July 07, 2008: Texas Pacific Group abandoned the last minute plans of injecting £179m into Bradford & Bingley as a part of a £400m fund-raising deal. This was followed by a refusal to comply with a new cooked up bailout by the City. B&B is now banking on its existing shareholders to raise the much-needed cash, this will be done by an enlarged rights issue at 55p/share. The new deal, which is underwritten by Citi and UBS, is backed by a large portion of the largest investors of B&B but there are warnings raised by the market analysts that the road to this deal will not be as smooth as expected. This led to a a fall in the shares' price from 6½p to 54½p today. The City is not much pleased with B&B and its advisers Goldman Sachs and Rod Kent, Chairman, is not likely to survive the axe on his head after the latest debacle. This is purely because initially a rights issue at 82p a share fall apart and within no time, the TPG deal collapsed and this deal is likely to meet the same future. The situation of unpredictability and unavailability of cash will impact credit rating of the group further and will also negatively impact the probability of survival. For additional information on the news that is the subject of this release (or for a sample, copy or demo), contact Webmaster or visit http://www.online-unsecured-loans.co.uk/ Bookmark with: Delicious Digg reddit Facebook StumbleUpon What are these?

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