Resolution says B&B rejects revised plan

By Steve Slater

LONDON (Reuters) - Restructuring specialist Resolution said it has been denied access to the books of Bradford & Bingley BB.L despite revising a proposed 400 million-pound investment plan for the bank.

B&B declined to comment. A person familiar with the matter said talks between the two sides were continuing.

Resolution, headed by entrepreneur Clive Cowdery, said under its revised proposal it would buy B&B shares at 72 pence each, limit its voting rights to under 30 percent, and allow other investors to buy shares on the same terms.

But it said B&B's board had discussed the plan and continued to deny it access to due diligence.

It deepens a dispute that erupted on Monday between Cowdery and B&B, Britain's biggest buy-to-let lender, which is in need of cash after a slump in the UK housing market.

B&B rejected Cowdery's original approach, saying it would effectively have given control of the bank to Resolution.

Under the revised plan, four top B&B investors would inject "at least" 400 million pounds and allow other investors to participate on the same terms under a "clawback" arrangement, Resolution said in a statement late on Wednesday.

"Full control of Bradford & Bingley would remain with the board of Bradford & Bingley," it said, saying investors backing its plan would limit their voting rights to 29.9 percent.