Bank exploring options to raise as much as 600 mln stg reports
Could include over 100 mln stg from selling shares sources
Shares drop as much as 29

LONDON, Oct 5 Reuters Metro Bank shares plunged more than 25 on Thursday following reports the British lender was exploring options to raise as much 600 million pounds 728 million in debt and equity to bolster its finances.

Shares in the bank have lost about two thirds of their value since midFebruary. As of Wednesday39;s close, the lender, which reported around 15.5 billion pounds in customer deposits at June 30, was valued at 87 million pounds.

The fundraising could include more than 100 million pounds from selling shares to bolster capital, three sources familiar with the matter told Reuters on Wednesday.

Metro said in a statement on Thursday it was considering its options, adding that it met its minimum capital requirements and had not made a decision on fundraising plans.

The company is evaluating the merits of a range of options, including a combination of equity issuance, debt issuance andor refinancing and asset sales, it said.

Shares in the bank dropped as much as 29.4 on Thursday, triggering two brief automatic suspensions in trading. They were last down 24.8 at 0819 GMT.

A 350 million bond due to mature in 2025 also fell sharply, according to MarketAxess, dropping by around seven pence on the pound from Wednesday39;s close.

Some analysts were unconvinced by the bank39;s prospects.

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