|
|
Doubts raised about tenets of underwriting
Summary from the United Kingdom, from articles in English
|
Bradford & Bingley and its underwriting advisers Citigroup and UBS were accused yesterday of failing B&B shareholders and of damaging the reputation of the City of London because of the former building society's botched capital-raising. (article 2)
Senior City figures and institutional investors lined up to denounce the decision by B&B to allow Citigroup and UBS to walk away from their promise to guarantee a critical $300million rights issue on Monday. (article 2)
Terry Smith said: " This can't have done the reputation of the City of London any good. (article 2)
He contrasted the embarrassing B&B saga with a bond issue by IBM in December 1941 that was underwritten by Goldman Sachs, which stood by the client even when the Japanese bombed Pearl Harbor. (article 2)
B&B had failed to have the material adverse change clause defined narrowly enough or the underwriters were failing in their duty. (article 2)
Gavin Oldham, a champion of small investors' rights and chief executive of The Share Centre, the retail stockbroker, said that the failure of the original rights issue had damaged the City. (article 2)
One fund manager at a big institution said: " I think the investment banks argued their case and B&B blinked - and they shouldn't have done. (article 2)
|
Other summaries about this story:
Event tracking:
Story keywords
|
b&b, Rights, issue, TPG, Underwriting |
Source articles
- Banking & Finance News (business.timesonline.co.uk, 06/05/2008, 397 words)
- Bradford & Bingley denounced for damaging City reputation (business.timesonline.co.uk, 06/04/2008, 538 words)
|
|
blaster@cs.columbia.edu
|
