B&B shareholders approve £400m rights issue
Shareholders at Bradford & Bingley have approved the issuance of a £400 million rights issue today (July 17th).
The decision, taken at and extraordinary general meeting held in Sheffield, was taken despite the bank's share price trading below the rights issue price of 55 pence.
Bradford & Bingley said that about 223 million shareholders voted for the plans, with seven million against and nine million abstaining.
Rod Kent, executive chairman of B&B, said in a statement that he was pleased that shareholders voted in favour of the enlarged rights issue.
He said: "The proceeds of which will strengthen our capital base, ensuring we remain one of the better capitalised banks in the UK."
Bradford & Bingley shares have been trading near record lows, prompting the bank to sell a 23 per cent stake in the firm to Texas Pacific earlier this month, before the private equity firm later backed out, embarrassing management.
Mortgages News posted on 17/07/2008 13:33:07
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