Co-Op Bank Halts Sale Process as Capital Raise Talks Advance
- British lender to focus on deal with bondholders as sale ends
- Bank’s capital requirements could fall further than expected
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Co-Operative Bank Plc scrapped plans to sell itself, saying it has reached agreement with investors on most of the main points of a recapitalization plan.
A proposal from its bondholders would allow Co-Op Bank to meet its capital requirements and remain a stand-alone entity, the Manchester, England-based bank said in a statement on Monday. The parties are in “advanced” talks over separating the bank from the pension obligations of the Co-Op Group supermarket chain, its former parent company.