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Resolution bid to see B&B’s books wins UK Shareholders Association support

Resolution’s request to access Bradford & Bingley’s books has been given the backing of the UK Shareholders Association and 40 per cent of the bank’s institutional shareholders, the firm claims.

The investment company led by Clive Cowdery made a £400m bid to acquire a controlling stake in the bank, which was rejected by B&B’s board as it continues to recommend that its shareholders vote for a rights issue and the sale of a 23 per cent stake to Texas Pacific Group.

B&B is denying Resolution access to its books for due diligence purposes.

The Association of British Insurers has warned that the proposals recommended by the B&B board to the bank’s shareholders represent “breaches of sound governance”.

UK Shareholders Association communications director Roger Lawson says: “We believe that Resolution’s proposal should be seriously considered by Bradford & Bingley and that Resolution should be given access to financial information to enable them to firm up their proposal.”

Resolution says its proposals would provide a capital injection into B&B that is not conditional on maintenance of credit ratings or the uncertainty of a rights issue.

It also argues that its proposals would be on a similar timetable to the rights issue and capital raising from TPG, but at a materially higher price.

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