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Metro Bank shares sink on report of capital raising

Metro Bank shares sink on report of capital raising
FILE PHOTO: A logo is seen on the outside of a branch of Metro Bank in central London July 28, 2010. REUTERS/Toby Melville/File Photo Copyright Toby Melville(Reuters)
Copyright Toby Melville(Reuters)
By Reuters
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LONDON (Reuters) - Metro Bank shares sank as much as 10 percent on Tuesday afternoon after a Bloomberg report said the lender is considering a share sale of up to £400 million ($530 million) to raise capital.

The report, citing sources, said a share sale may happen as early as this week.

Metro Bank declined to comment on the report.

The British lender's shares lost a third of their value a month ago when it announced a sharp rise in exposure to higher-risk mortgages and said profits would be hit by slowing growth, raising fears of a shareholder cash call.

At 1540 GMT, the shares were down 9.3 percent at the bottom of the FTSE 250.

(This story was refiled to fix conversion from pounds to dollars in first paragraph)

(Reporting by Helen Reid; additional reporting by Iain Withers; editing by Jospehine Mason)

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