Action group blasts 'derisory' B&B bond offer

The Bradford & Bingley Shareholders Action Group has hit out at the government's offer to exchange two perpetual subordinated bonds in the nationalised bank for a 3p premium to the current market value.

The government offered bondholders 38p in the pound and 36p respectively on the 13% and 11.625% perpetual subordinated bonds. The bonds were trading at 35p and 33p before the offer. Bradford and Bingley, which was nationalised in September 2008, has a number of outstanding bonds trading well below par value. Similar bonds at a number of Irish banks are also trading at lowly levels. While the offer for the B&B bonds are at a premium, action group chairman David Blundell hit out at the offer. "Our view has always been that the decision to nationalise B&B was made in haste and has pro...