12:41pm Wednesday 14th May 2008
By Chris Holland
Shares in mortgage bank Bradford & Bingley fell sharply following the announcement of a £300m rights issue by the company to bolster its balance sheet in the face of continuing losses on treasury investments.
The bank's U-turn, only weeks after denying it was considering such a move, has failed to impress financial analysts.
Its shares were down by 15.5p at 143.25p at noon today.
Chief executive Steven Crawshaw said raising extra funds from shareholders, including 935,000 individuals, says the move would reinforce its position as one of the UK's "better capitalised" banks.
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