£700m Co-op deal delayed by pensions

THE struggling Co-op Bank is close to securing a £700m investment from US hedge funds.

Bosses are battling to keep the lender afloat amid speculation the Bank of England could wind it up. The Co-op Bank was put on the market earlier this year but despite interest from rivals such as Virgin Money, no offers have been made. It is thought likely the US hedge funds, which own 80pc of the lender, will stump up the cash to save it. However, there are concerns over a £10bn pension pot it shares with the Coop Group. The hedge funds said they will pump £200m into this scheme, but the group is thought to be holding out for more.