Bradford and Bingley looks to new chief executive to steady ship
BRADFORD & Bingley said today that former Alliance and Leicester boss Richard Pym is to become its new chief executive as it confirmed that investors had subscribed to 27.8 per cent of its £400m rights issue.
Mr Pym’s arrival comes at a crucial time for the bank with the Financial Services Authority wanting it to be absorbed by a larger competitor and B&B itself desperate to regain the City’s confidence after the disastrous twice-revised rights issue.
Although better supported than a recent rights issue by rival Halifax Bank of Scotland almost £300m of B&B’s new shares will be left with underwriters backing the cash call.
Underwriters Citi and UBS, which had said they would stand by the plan, will now have to place the remaining 597 million new shares by close of trading on Friday.
Citi and UBS are supported by four major shareholders and six clearing banks that have agreed to back the underwriters – spreading the cost of propping up B&B over 12 institutions.
B&B shares fell as low as 31p last month – hit by worries over the bank’s future beyond the cash call and the impact of a deteriorating UK economy on the country’s top buy-to-let lender – but have since traded around 55p.
The bank said separately that there had been “no material change in the current trading and outlook” since its trading statement published in June.
Mr Pym retired as group chief executive of Alliance & Leicester in July 2007.
He joined A&L in 1992 as group finance director, and became managing director of retail banking in 2001 and chief executive in 2002.
Mr Pym is currently an independent non-executive director of Old Mutual, the international asset management group and non-executive chairman of BrightHouse Group, an investment of private equity firm Vision
Capital.
Apart from being chief executive of A&L for five years, he has also held senior positions at British Gas, BAT Industries, and The Burton Group.
Rod Kent, chairman of Bradford & Bingley, said: “It has been a key priority for the Board to find a new chief executive, and we believe that Richard Pym is ideal for the role.”
Mr Pym said: “Bradford & Bingley has developed strong customer franchises in savings and lending and I am delighted to have been invited to lead the business. I look forward to working with the Board and executive team in building a successful future.”
