Resolution scraps investment plan for Bradford & Bingley

LONDON (AFP) — British investment group Resolution said Friday it had abandoned its funding plan for home-loans provider Bradford & Bingley because of opposition from management at the group it sought to buy.

The news sent B&B's share price tumbling by almost a quarter in value on the London Stock Exchange as prospects of a bidding competition disappeared.

On Tuesday, B&B had rejected Resolution's offer to provide 400 million pounds (500 million euros, 778 million dollars) of capital to the cash-strapped lender which specialises in mortgages for investors buying homes to rent.

B&B had agreed earlier this month to sell a 23 percent stake to US investment group TPG Capital for 179 million pounds as it seeks to secure fresh funds amid the ongoing global squeeze on credit.

The global credit crunch erupted in August 2007 after the collapse of the US subprime or ...