Bradford And Bingley Rights Issue Approved
While the highly controversial rights issues by Bradford and Bingley has been in the news of late it was formally approved by a vote at today's shareholders meeting, although there was some controversy when representative of Standard Life took the floor. Speaking for some 30 million shares (or 5% of the share capital of the group), Guy Jubb asked for a cast iron assurance that existing shareholders would be given first option on the new issue - which was given.
This was a somewhat strange move and one which would normally have been done behind closed doors, but the current situation at Bradford and Bingley has caused many investors to question the way the bank is performing. Overall the meeting ended up being one long apology for the current situation and the lack of direction over the last few months.
Even though the £400 million rights issue will now go ahead there is still a feeling in the City that the bank's days as an independent company are numbered. Whether a takeover comes in tomorrow, next week or over the next few months, the group is very much holed below the water line and has lost the confidence of many larger investors.
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