Bradford & Bingley (B&B) has plunged 15% to a new low of 52p this morning, after the US buyout firm TPG walked away from leading its restructured rights issue after Moody's downgraded B&B's credit rating for a second time last night.
This less than welcome news follows B&B's rejection of a proposal of 72p per share from Resolution two weeks ago.
The question that shareholders will be asking themselves is why did the board reject a 72p offer two weeks ago.
Could it be possible that the board of B&B know that the due diligence that Resolution would have carried out, would have found something that would have caused them to walk away as well?
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