TSB boss rules out bid for ailing Co-op Bank

The boss of TSB has ruled out a bid for the beleaguered Co-op Bank, throwing fresh doubt on the sales process.

TSB was seen a while ago as a plausible bidder for the bank, but chief executive Paul Pester told BBC Radio 5 today he wasn’t interested.

“We’ve not looked at it,” he said. “We’re very busy bringing more competition to UK banking. Very busy growing TSB.”

Co-op Bank said recently it had received “a number” of informal bids, both from “strategic” and “financial” bidders.

The strategic bids could come from Virgin Money and Clydesdale while Cerberus and JC Flowers are reported to be private equity firms checking the numbers.

Co-op Bank was rescued in 2013 by Wall Street hedge funds. The wider Co-op Group earlier this month cut its stake in the bank to zero.

Co-op Bank put itself up for sale in February after failing to satisfy watchdogs it had the capital to continue on its own.