Bradford & Bingley is to launch a charm offensive in an attempt to convince disgruntled shareholders to support its £400m fundraising.

Management will meet institutional investors over the coming weeks to try to convince them the bank’s rescue package with private equity group Texas Pacific Group is the best way to protect the company.

Last week, B&B stunned the market with a profits warning and a deal to sell 23% of the bank to TPG for £179m. It is also raising a further £258m from a rights issue, the price of which was last week slashed from 82p to 55p.

Shareholders are furious that the TPG investment seems to break the pre-emption rights principle, which gives existing shareholders first call on any new shares being issued.

Daily Telegraph