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Resolution pressures B&B management to allow due diligence to commence
Clive Cowdery said he has the backing of a quarter of shareholders in Bradford & Bingley for his proposed £400 million investment plan for the bank.
Resolution, Cowdery's restructuring vehicle, is leading a plan to inject the cash into the buy-to-let lender, but its target has refused to allow it access to its books.
Resolution said in a statement on Thursday that institutions representing about 25% of B&B's shares had contacted it to support its request to be given access to due diligence.
That represents about 40% of B&B's institutional investor base, as retail investors own about 40% of the lender's shares.
Resolution said retail investor lobby group the UK Shareholders Association also wants B&B to consider the proposal.
Resolution has proposed to buy B&B shares at 72 pence each and would allow all shareholders to invest on the same terms. It also said B&B's board would remain in control of the lender.
But B&B rejected an initial approach on Monday and is continuing with a plan to sell a 23% stake to U.S. private equity firm TPG Capital LP TPG.UL for about £179 million and raise a further £258 million through a rights issue.
Among the shareholders backing Resolution and pledging to put money into B&B are four of its top investors -- Standard Life , Legal & General Group, Prudential, M&G and HBOS Insight, who together own more than 13% of B&B shares. Cowdery owns a further 2.9%.
Resolution, Cowdery's restructuring vehicle, is leading a plan to inject the cash into the buy-to-let lender, but its target has refused to allow it access to its books.
Resolution said in a statement on Thursday that institutions representing about 25% of B&B's shares had contacted it to support its request to be given access to due diligence.
That represents about 40% of B&B's institutional investor base, as retail investors own about 40% of the lender's shares.
Resolution said retail investor lobby group the UK Shareholders Association also wants B&B to consider the proposal.
Resolution has proposed to buy B&B shares at 72 pence each and would allow all shareholders to invest on the same terms. It also said B&B's board would remain in control of the lender.
But B&B rejected an initial approach on Monday and is continuing with a plan to sell a 23% stake to U.S. private equity firm TPG Capital LP TPG.UL for about £179 million and raise a further £258 million through a rights issue.
Among the shareholders backing Resolution and pledging to put money into B&B are four of its top investors -- Standard Life , Legal & General Group, Prudential, M&G and HBOS Insight, who together own more than 13% of B&B shares. Cowdery owns a further 2.9%.
Fri, 27th Jun 2008