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As sale process continues...

Co-op Bank in talks with existing investors

Co-operativeCo-operative Bank has admitted is in talks with its existing investors to re-capitalise the business.

The bank, 20% owned by the Co-operative Group, almost collapsed in 2013, and was bailed out by US hedge funds.

In February of this year it put itself up for sale and said this morning that the sale process will continue.

In a statement this morning it said: “The Co-operative Bank announced on 13 February 2017 that it was commencing a Formal Sale Process under the Takeover Code alongside considering other options to build capital, to meet the longer term capital requirements applicable to all UK banks.

“The Bank notes recent media speculation and confirms that it is in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise.

“The Bank and other relevant parties continue active discussions regarding separation of the Co-operative Pension Scheme (Pace).

“The Formal Sale Process continues. The Bank continues to fully discuss both the sale process and the capital raise options with the Prudential Regulation Authority (PRA), which has welcomed the sale and capital raise process.

“A further update will be made when appropriate.”

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