Resolution scraps investment plan for Bradford & Bingley

0 Comments | AFP, June, 2008

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...