Troubled Metro Bank scrambles to secure £350m funding deal as shares stage their biggest one-day rally ever
Beleaguered Metro Bank was last night locked in talks with investors as it scrambles to raise £350million.
Shares staged their biggest one-day rally ever yesterday amid rumours a deal would be signed off after the market closed, giving the lender crucial stability after weeks of speculation over its future.
But at the time of going to press, no announcement on fundraising had been made. Sources close to Metro said that a deal is likely by the end of this week.
Metro Bank, founded by American billionaire Vernon Hill (pictured here with wife Shirley), was last night locked in talks with investors as it scrambles to raise £350m
Its shares have plunged since it revealed in January that it had miscalculated the riskiness of some property loans.
It then announced in February that it would raise an extra £350million to fund future growth.
There is no suggestion the bank is in danger of running out of money, and customer deposits of up to £85,000 are legally protected by the Financial Services Compensation Scheme.
Shares rose 15 per cent, or 76p, to 584p yesterday but are down more than 85 per cent from March last year.