Talks over sale of Co-operative Bank progress

Discussions over the sale of the struggling Co-operative Bank and the separation of its pension scheme are continuing.

The Manchester-based bank has confirmed media speculation that it is in advanced discussions with a group of 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),” it said.

“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.”