Alliance & Leicester is under the cosh again on funding fears.
The mortgage bank's shares are down 15p to 675p, having fallen as low as 634p. There were rumours that a line of credit had been withdrawn and Alliance & Leicester was having difficulties raising money. It has to be said that, in these times of turbulence in the financial sector, these rumours are a fairly regular occurence and are denied by the company equally regularly.
Indeed, Alliance & Leicester bought back 100,000 shares at 685.49p each yesterday for cancellation. A spokesman is again quoted on the wires dismissing the tales. A call is in to the bank, but so far there has been no reply. More later, hopefully.
