B&B bullish in rights issue

BRADFORD & Bingley is still confident that its right issue will raise £400 million despite American private equity firm Texas Pacific Group walking away from any deal.

TPG, which was due to buy 23 per cent of the company as part of a wider funding package, withdrew its £179m cash injection.

But B&B said a group of its largest shareholders, including Standard Life Investments, M&G Investment Managers and Legal & General Investment Management, were now backing the deal. The bank, which has been badly hit by the credit crunch, is raising the £400m to help shore up its finances.

B&B's executive chairman Rod Kent said: "Bradford & Bingley continues to be well-funded and the capital-raising will reinforce our position."