Why should I join the B&B campaign?

By THIS IS MONEY
Updated:

 

I have received a letter inviting me to join an action group for Bradford & Bingley shareholders.

B&B is arguably the biggest test of how the City is run

Is this a legitimate body and what exactly are they campaigning for? G.S.

Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, replies: Bradford & Bingley tried to raise £400m last summer, some through a rights issue.

Existing shareholders were invited to buy 19 new shares for every 25 they owned at 55p, a discount to market price.

But weeks after the rights issue, the company was nationalised and its savings business sold to Santander, owner of Abbey.

The shares became virtually worthless.

The Bradford & Bingley Rights Issue Action Group, under the auspices of London law firm Leon Kaye, 'seeks compensation by way of damages for misrepresentation arising out of the prospectus which preceded the rights issue'.

For more information visit leonkaye.co.uk.

 

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