Virgin Money tipped to bid for Co-op Bank

VIRGIN Money is expected to make a bid for the ailing Co-op Bank.

The smaller lender is poised to show its hand in the first round of bidding which closes this week, it is understood.

It will be up against private equity bidders and could see a potential rival bid from Clydesdale Bank.

Co-op Bank is looking for new owners after suffering heavy losses just three years after it came close to collapse. A sale could see a rival or private equity group take control of its 105 branches and four million customers – although it requires a hefty investment.

If it is unable to find a buyer by the deadline, Co-op Bank will be forced to raise £750m in fresh capital or be wound down.

Virgin Money declined to comment.