LONDON May 9 Britain's Co-operative Bank said
it would raise 400 million pounds ($678 million) of extra
capital through the issue of new shares which will see the
Co-operative Group's shareholding decline.
The bank said in March that it needed to raise the funds to
cover the cost of past misconduct. The latest capital raise
comes on top of last year's 1.5 billion pound recapitalisation
which saw the Co-operative Group cede control of the bank to
bondholders including U.S. hedge funds.
Co-op Group said on Friday that it would take part in the
latest capital raise and retain a significant stake. It said its
shareholding would be reduced from the current 30 percent but it
expected to remain the bank's biggest single shareholder.
($1 = 0.5899 British Pounds)
(Reporting by Matt Scuffham, Editing by Paul Sandle)