B&B investors look to Resolution as alternative to TPG rescue

by Gill Montia

Story link: B&B investors look to Resolution as alternative to TPG rescue

Institutional investors at Bradford & Bingley (B&B) are urging the lender to enter negotiations with closed life consolidator, Resolution Life Group.

During its recent troubled rights issue, B&B saw its share price fall below the issue price and turned to private equity firm, Texas Pacific Group (TGP), for an injection of cash.

This allowed the bank to lower its fundraising expectations from existing shareholders.

It is understood that major investors in B&B including M&G, Standard Life and Legal & General are now urging the lender to talk to Resolution, which has declared itself interested in becoming a vehicle for consolidation in the banking sector.

Resolution chairman, Clive Cowdrey, already holds a 2.9% stake in B&B and the group has built up an impressive track record with its consolidation strategy for closed life funds.

Andy deal with Resolution would replace TPG’s rescue package.

B&B has around one million retail shareholders who would have to vote on an alternative to the TPG plan.