UK: FEAR OVER BRADFORD & BINGLEY FLOTATION
Article Abstract:
Bradford & Bingley's flotation plan could be impaired by the fact that shares of building societies which have undergone conversion have experienced significant declines since the April 1999 vote which agreed to the move. The UK-based building society has rejected claims that the flotation may not take place and is also set to reveal a new strategy which will make it less dependent on the intensely competitive mortgage arena. Bradford & Bingley initial market worth had been expected to be approximately GB[pound] 2.5bn. Over the past 12 months, mortgage banks have underperformed the FTSE 100 share index by 35%, compare which the 16% underperformance by banks.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: B&B FLOTATION DOUBTS AS BIDDER EMERGES
Article Abstract:
Bradford & Bingley, the building society, has had its GB[pound] 1.5bn flotation plan thrown into doubt by a fall in mortgage bank valuations. There is scepticism in the City on whether B&B can float at a price that will make it worthwhile. Its 2.6mn members stand to receive less than GB[pound] 400. The Commonwealth Bank of Australia is also believed to be considering a bid for B&B. It wants to expand in the UK mortgage market to increase its earnings coming from overseas. There has however not been a verbal or written approach received by B&B. Many observers believe a trade sale will better serve members although other UK banks are reluctant to consider acquisitions when the sector is out of favour in the City.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: FLOTATION PRICE CUT FOR BRADFORD & BINGLEY
Article Abstract:
The fall in share prices across the mortgage bank market has resulted in the flotation price for Bradford & Bingley being cut by its advisers, investment bank Goldman Sachs. The company is now valued at around GB[pound] 1.5bn, down from GB[pound] 1.75bn-GB[pound] 2.2bn in December 1999. The flotation is planned for 4 December 2000. The lower valuation will reduce the windfall bonus for Bradford & Bingley accountholders to around GB[pound] 600 each from GB[pound] 800.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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