Bradford & Bingley plans rights issue

LONDON (Reuters) - Mortgage lender Bradford & Bingley BB.L is set to launch a 300 million pound rights issue as it becomes the latest bank to bolster its balance sheet, the Financial Times reported on Wednesday.

The newspaper said the bank, hit by the turmoil in the credit markets and worries about falling prices in the British housing market, had on Tuesday night been finalising details of the cash call, which was expected to be announced on Wednesday.

The Financial Times said Bradford & Bingley was expected to offer shareholders the opportunity to buy one new share for every one they own at a steep discount to Tuesday's close of 158.75 pence a share.

Bradford & Bingley was not immediately available for comment.

(Reporting by Mike Elliott; editing by Sue Thomas)