UK sub-prime mortgage lender rescued by SA bank

Investec, the South Africa bank, has agreed to rescue Kensington, the troubled sub-prime mortgage lender, which admitted today it is no longer able to raise financing to support its business. The bank is paying £283 million, less than half the value Kensington commanded in the spring of last year,

Investec rode to the rescue of Kensington in an all-share deal after the British company said revenues for the current financial year would be significantly below 2006, adding: "Trading conditions have been challenging in the first fiove months to April 20, 2007." Read more