(Adds information about Corsair's interest)
May 7 Private equity firms, including Corsair
Capital, were approached to take part in a 400 million pound
($678.62 million)rescue fundraising for the struggling Co-op
Bank, according to Sky News and a source familiar with the
However, the source said no serious discussions have
occurred between Co-op Bank and Corsair about the private equity
firm buying a stake in it.
Co-op Bank nearly collapsed last year after the discovery of
a 1.5 billion pound hole in its balance sheet and had to be
rescued by bondholders, a move that drastically reduced the
stake of its former owner, Co-operative Group.
Sky News, which earlier reported the talks with Corsair,
also said that Apollo Global Management had expressed an
interest in Co-op Bank.
"In the next few business days we will make an announcement
on the capital raise. Until then we are not making any formal
announcements," a spokesman for Co-op Bank told Reuters.
The report came on the same day as a review of the Co-op
Group by former director Paul Myners was published. The review
said the organization should restructure its current 'manifestly
dysfunctional' board and make it smaller with more members with
($1 = 0.5894 British Pounds)
(Reporting by Tasim Zahid in Bangalore and Paritosh Bansal in
New York; Editing by Alden Bentley and Dan Grebler)