Bradford and Bingley makes cash call

8:28am Wednesday 14th May 2008

Mortgage bank Bradford & Bingley has asked shareholders for £300 million in a bid to bolster its balance sheet.

The rights issue, which will see shares offered at a 48 per cent discount to the company's share price on Tuesday night, follows similar moves by larger banking groups Royal Bank of Scotland and Halifax Bank of Scotland.

Bradford & Bingley denied as recently as last month that it was planning to carry out a cash call. However, it said the move would reinforce its position as one of the UK's "better capitalised" banks.

Editor's choice