Virgin Money walks away from Co-op Bank takeover talks after months of speculation

William Turvill
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Co-op Bank kicked off the sale process in mid-February (Source: Getty)

Virgin Money has walked away from a deal to buy Co-op Bank after months of speculation linking the lender with a move.

Sky News reported that Virgin Money, led by Jayne-Anne Gadhia, informed Co-op Bank in recent days that discussions were being terminated.

Read more: Challenger bank Aldermore is on the lookout for deals (not with Co-op Bank)

Co-op Bank now looks set to advance in talks with a group of hedge funds, led by GoldenTree Asset Management and Silver Point, about a financial restructuring.

Co-op Bank kicked off a sale process, run by bankers from UBS and Bank of America Merrill Lynch, in mid-February.

In early April, the bank announced it had received a “number of non-binding proposals from strategic and financial parties”.

Read more: As hopes of takeover fade, Co-op Bank backers could pump more into lender

It also said it had “selected several parties to enter a further phase during which these parties will be provided with additional information”.

This month, it has appeared less and less likely that a conventional buyer would be found.

Virgin Money and Co-op Bank declined to comment.

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