Bradford and Bingley CEO does a runner

Banderman

m00m00 wrote: »

top story on the bbc news, B&B to get 400 million cash injection

not from gordon brown for a change

http://www.bbc.co.uk/blogs/thereporters/robertpeston/

Will this be enough to save them from oblivion though? I'm not so sure.

Trollfever

As a wiki link has been posted:

http://en.wikipedia.org/wiki/Robert_Maxwell

No comment.

WTF?_2

MarkyMarkD wrote: »

The rights issue is fully underwritten, so B&B will get the money. I don't see on what grounds you suggest they "won't last the month".

This bit:is absolutely the wrong way around. The credit crunch's impact is all about interest margins - basically, cost of borrowing for banks has increased tremendously. Bad debt losses are trivial compared to this.

Now that they have suddenly and miraculously ( :rolleyes: ) been bailed out by a private equity group:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/06/private_equity_shores_up_bb.html
(thanks go to m00m00 for the link)

... I suppose they can limp along for more than a month.

What's clear is that the 300million quid rights issue was no longer enough if they had to sell up another 20% of their company to private equity.

At least it wasn't a public money bailout, unlike NR, for which we should be thankful.

Banderman

Maybe now their share price will go up tomorrow? There's always a first for everything

Rover

Watch the share price tomorrow!
The underwriters will be as 'sick as a parrot'. Sub 60p for sure... Britain's biggest BTL mortgage lender visibly withering on the vine.

What will Kirsty and Pickles say - Britain's only remaining property Bulls.

WTF?_2

Rover wrote: »

Watch the share price tomorrow!
The underwriters will be as 'sick as a parrot'. Sub 60p for sure... Britain's biggest BTL mortgage lender visibly withering on the vine.

What will Kirsty and Pickles say - Britain's only remaining property Bulls.

The 'new' shares now appear to be valued at 50p if Preston's report is correct:

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/06/private_equity_shores_up_bb.html

The price of the new shares for TPG and for B&B's existing shareholders is expected to be a bit above 50p per share, well below the original rights price of 82p per share.

So basically, they have implicitly written down their share value by about 36%!

Ouch! :eek:

gillybean2811

I've just watched the news ... I have more than £30k banked at B&B - should I draw it out? Is this going to be the same as the Northern Rock fiasco?? Thanks!

Rover

From a high of <£5 ~ 18 months ago, you've got to laugh. Nearly as bad as Barratt's!

WTF?_2

gillybean2811 wrote: »

I've just watched the news ... I have more than £30k banked at B&B - should I draw it out? Is this going to be the same as the Northern Rock fiasco?? Thanks!

Your 30k should be safe.

It's like NR, the government can't let them fail.

(Having said that, If I had a large amount of cash with them and I could move the money easily with ebanking and I had another account somewhere I could transfer it to .. I would move it simply to minimise risk)

Treadmill

gillybean2811 wrote: »

I've just watched the news ... I have more than £30k banked at B&B - should I draw it out? Is this going to be the same as the Northern Rock fiasco?? Thanks!

I would, sod what anyone else thinks, the risk of losing it is very small but thats a lot of wedge. Not the sort of thing I'd want to be wrong about.