B&B Investors Rescue Fund-Raising as TPG Quits

A group of major investors stepped in to rescue a capital-raising effort by Bradford & Bingley PLC, after U.S. buyout firm TPG pulled out of a deal to take a stake in the troubled U.K. mortgage lender.

In a series of events pushed into motion by U.K. regulators, the investors acted after TPG decided late Thursday to terminate its commitment to inject £179 million ($354.9 million) into the company in return for a 23% stake. Moody's Investors Service had cut the bank's long-term credit rating, triggering a clause that allowed TPG to pull out of the deal.

B&B said it ...