B&B faces fees for failed funding deal
Monday, 07 Jul 2008 09:14
B&B faces failed deal fee
Bradford & Bingley (B&B) is to pay out a fee to Goldman Sachs for its collapsed funding deal.
The Sunday Telegraph reports despite US investors Texas Pacific Group (TPG) pulling out of a £179 million deal for a 23 per cent stake, the buy-to-let lender will still pay Goldman Sachs for advising on the deal.
TPG pulled out of the deal last week after B&B's debt rating was lowered.
B&B – the eighth biggest UK bank - will now return to it initial plan to raise some £400 million through a rights issue.
It is thought some of the company's largest investors – including M&G Investment Managers, Legal & General Investment Management, Insight Investment and Standard Life Investments – will take control of the bulk of the stock.
The rights issue has an unchanged subscription price of 55 pence per share, and will be underwritten by Citi and UBS.