Page last updated at 15:06 GMT, Friday, 15 August 2008 16:06 UK

Bradford & Bingley cash call ends

Bradford & Bingley branch

A 400m rights issue at Bradford & Bingley (B&B) has closed, with analysts expecting that some of the deal's underwriters will end up with shares.

Shares in B&B were trading at 55.25p when the deadline for the cash call finished on Friday - just above the 55p offer price for existing investors.

The take-up is forecast to be modest - though higher than the 8% seen last month in a rights issue by HBOS.

B&B, a buy-to-let loans specialist, has been hit hard by the credit crunch.

It is not expected to reveal how many shareholders took up the offer to buy extra shares until Monday.

The rights issue was underwritten by banks including Citi and UBS, along with HSBC, Lloyds TSB, HBOS, Barclays, Abbey and the Royal Bank of Scotland.

WHAT IS A RIGHTS ISSUE?
Companies issue extra shares to raise money
They are offered to existing shareholders, usually at a discount to the current share price
Shares are offered in proportion to existing holdings, so if you own 10% of the old shares you are offered 10% of the new ones

Rival cash calls

B&B's rights issue has been restructured twice. The bank first announced an attempt to sell shares at 82p in May. Then, as trading took a turn for the worse, B&B announced it had decided to sell a 23% stake in the firm to Texas Pacific, but the private equity firm later backed out.

Earlier this year the Royal Bank of Scotland raised 12bn from its shareholders with a strong take-up in its rights issue.

Meanwhile Barclays has secured 4.5bn in new funding from a range of foreign investors.

Barclays announced last month that 19% of its new shares had been taken up by existing investors.


SEE ALSO
HBOS investors snub share issue
21 Jul 08 |  Business
Shareholders back B&B cash call
17 Jul 08 |  Business
B&B shares fall 18% to record low
07 Jul 08 |  Business
B&B 'faces fee for failed deal'
06 Jul 08 |  Business
UK investors rescue B&B cash call
04 Jul 08 |  Business
B&B fund-raising effort rescued
03 Jul 08 |  Business

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