Virgin Money withdraws from Co-op Bank takeover

Virgin Money was reportedly considering buying assets from the Bank, however Sky News reports that Virgin are now "terminating discussions about a formal offer" for Co-Op, which is now thought to be seeking a deal with its US hedge fund investors.

Speaking to Reuters in March, Virgin Money's CEO, Jayne-Anne Gadhia, said: "The bank has not approached anybody in Co-Op Bank yet... but at some point we will look at this strategic opportunity".

In a statement, the Co-Operative Board said the sale was "something always considered a potential outcome of the turnaround plan" and is inviting offers for all of the issued ordinary share capital of the Bank.

It is also considering ways to raise equity capital from existing and new capital providers and a potential liability management exercise of its outstanding public debt.

The Bank hopes to raise around £700m in capital and between £250m and £300m from issuing new shares.