Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Competing narratives in Malaysia Airlines disaster coverage

Read more

AFRICA NEWS

Kenya : Police arrest 8 over Mombasa rampage

Read more

FOCUS

Overfishing and the global appetite for bluefin tuna: can Tokyo turn the tide?

Read more

MEDIAWATCH

Too many graphic images from Gaza ?

Read more

FASHION

Who's next in Paris, an event with international ready-to-wear and fashion accessories collections

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

THE OBSERVERS

Muslims and Christians clean up Bangui, and violence spirals out of control in Algeria's Gardaia

Read more

IN THE PAPERS

Is there such thing as 'telegenic' victims of war?

Read more

IN THE PAPERS

2014-07-22 07:21 IN THE FRENCH PRESS

Read more

  • Israel hits targets in Gaza despite diplomatic efforts for ceasefire

    Read more

  • Flight MH17 shot down ‘by mistake,' US intelligence indicates

    Read more

  • Defying UK, France to proceed with sale of warship to Russia

    Read more

  • Conflicting rulings by two US courts cast shadow on future of Obamacare

    Read more

  • Video: Lebanon fears fallout from regional turmoil

    Read more

  • Widodo wins Indonesian presidential election

    Read more

  • US, European airlines suspend flights to Tel Aviv over Israel-Gaza conflict

    Read more

  • Australian veteran Rogers claims 16th stage of Tour de France

    Read more

  • France gives go-ahead to pro-Palestinian Paris rally

    Read more

  • French Jews mourn French-Israeli soldier killed in Gaza

    Read more

  • PSG punished by UEFA for abuse of disabled Chelsea fans

    Read more

  • Colombia's Rodriguez signs '€80m' contract with Real Madrid

    Read more

  • Children killed in minibus crash in eastern France

    Read more

  • A call for harmony in riot-hit ‘Little Jerusalem’ Paris suburb

    Read more

UK mortgage lender saved from ruin

Latest update : 2008-06-02

The embattled British mortgage lender Bradford and Bingley may have found a saviour in US private equity firm Texas Pacific Group, which reportedly agreed to purchase a 20% stake in the lender burdened by huge losses from the subprime fallout.

U.S. private equity firm Texas Pacific Group has agreed to take a 20 percent stake in Bradford & Bingley in a much-needed boost for the embattled UK mortgage lender, a source familiar with the matter said on Monday.
 
The source said the 150 million pound ($296 million) rescue deal will be part of a broader 400 million pound injection, including a rights issue of shares which will be trimmed to 250 million pounds from a previously announced 300 million.
 
Britain's largest buy-to-let lender, which has seen its share price fall more than 40 percent since it first announced plans for an emergency rights issue last month, will also cut the price of the new shares to 55 pence from 82 pence.
 
Bradford & Bingley's shares hit a record closing low of 88-1/2p on Friday, valuing the bank at 546 million pounds -- a fraction of its 3.3 billion value at its March 2006 peak.
 
Monday's news from B&B, which is also expected to include a warning on 2008 profits, is set to rekindle concerns about short-term prospects for the bank and the wider UK mortgage market, and will likely revive speculation of a takeover.
 
B&B announced the departure of its chief executive, Steven Crawshaw, on Sunday, less than a month after it surprised investors with news of an emergency 300 million pound rights issue.
 
The bank is due to make its announcement later on Monday. A B&B spokeswoman declined to comment. Texas Pacific could not immediately be reached.

Date created : 2008-06-02

COMMENT(S)