LONDON (AFP) — Shares in savings bank Bradford & Bingley rose by 12.50 percent on Tuesday after the company had rejected an offer of funds, raising prospects of a bidding competition.
Bradford & Bingley, facing financing strains, said it had rejected an offer from investment group Resolution to provide 400 million pounds because it preferred its own plan involving a shareholding for a US fund called TPG.
The rejection of the offer, and consequent prospects of a bidding competition, pushed the shares up 12.50 percent to 74.25 pence.
The board said it would continue to recommend that shareholders accept a plan for the sale of two slices of 23 percent of the capital to US fund Texas Pacific Group for 179 million pounds and a capital increase of 258 million pounds, to raise a total of 400 million pounds, net of costs.
Late on Monday, Resolution had said it was ready to inject 400 million pounds and said its strategy was to make Bradford & Bingley grow through tie-ups with smaller savings banks.
Resolution said that in turn it wanted 30 percent of the bank and to be exempted from a requirement to make a full bid.
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