B&B to detail rights allocation

Fri Jul 4, 2008 10:14am BST

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LONDON (Reuters) - Bradford & Bingley will announce later on Friday the allocation breakdown for the rights issue previously underwritten by U.S. private equity firm TPG Capital, a source familiar with the matter said.

TPG had planned to buy a 23 percent stake in B&B for 179 million pounds, but pulled out late on Thursday after ratings agency Moody's cut the buy-to-let mortgage lender's debt rating.

B&B will increase to size of its rights issue to 400 million pounds from 258 million pounds in a deal underwritten by Citigroup and UBS.

Key shareholders, including Standard Life, M&G, Legal & General and Insight, which hold a combined stake of approximately 14 percent, were supporting the enlarged rights issue, B&B said.

(Reporting by Daisy Ku; Editing by Erica Billingham)

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