TPG's U-Turn on B&B could pose questions for investors

Following Texas Pacific Group's (TPG) decision to withdraw from the deal with Bradford & Bingley (B&B). Nick Raynor, Investment Adviser at The Share Centre comments on what this means for investors.

"Moody's decision to downgrade B&B and TPG's exit could cause investors to be concerned. However, they should take heart from the fact that the lender is still getting backing from L&G, M&G, Insight Investments and Standard Life Investments.

"For existing B&B shareholders we take the view that they are best to hold on to what they have got for now to avoid selling at a loss.

"For potential investors, we still see B&B as very high risk. If we draw the conclusion that TPG has jumped ship at the first sign of trouble, investors need to ask themselves whether they too are best staying well clear."