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Bradford & Bingley’s bid to sell a quarter of its stock to a US investment bank and offer a revised rights issue could be scuppered if some of its biggest institutional shareholders’ attempt to soften it up for a rival bidder succeeds.

The mortgage bank was subject to a £400m bid from entrepreneur Clive Cowdery, allegedly backed by its four largest institutional investors: Standard Life, Legal & General, Prudential and Insight. A senior insider at one of

these companies, who wished not to be identified, has claimed the businesses’ backing for the venture.

A statement from Mr Cowdery’s Resolution confirms the bid is designed as an alternative to the B&B board’s proposals to raise capital by selling a 23 per cent share in the bank to Texas Pacific Group and a offering 55p rights issue. These plans will be voted on at an emergency general meeting of B&B shareholders on 7 July, where Mr Cowdery’s institutional backers – which currently own a 13 per cent stake in the bank between them - will have the opportunity to urge other shareholders to vote down the resolutions.

According to Resolution’s statement: “Resolution has now been invited by leading investors in Bradford & Bingley to assess the suitability of Bradford & Bingley for Resolution’s plans for the banking sector and, if suitable, to table a proposal that would be led and funded by investors in Bradford & Bingley.

“Such a proposal would result in a capital injection by existing Bradford & Bingley investors of some £400m to replace the TPG capital raise and restructured rights issue.

“Resolution is discussing with Bradford & Bingley an appropriate structure for this capital injection. Some of the structures under consideration may result in Resolution’s shareholding in Bradford & Bingley exceeding 30 per cent.” B&B rejected Mr Cowdery’s initial bid, issuing a statement saying: “The board carefully considered this proposal and on 22 June informed Resolution that it could not recommend the current form of the proposal to shareholders.”

However, a spokesman for the bank insisted the door was still open to a revised bid from Mr Cowdery.