Two of Britain's largest companies today launched emergency rights issues to bolster their balance sheets as the economic slowdown and continuing credit crunch forced them to seek extra cash.

Mortgage bank Bradford & Bingley and local newspapers group Johnston Press, both in the FTSE 250, are raising a total of £512 million.

Bradford & Bingley, which a month ago denied reports it was planning a rights issue, today called on shareholders for £300 million.

It is issuing the new shares at 82p, a 48% discount to last night's close. Shareholders are being offered 16 new shares for every 25 they own.

Like rivals Royal Bank of Scotland and HBOS, which are raising £12 billion and £4 billion respectively to repair their balance sheets, B&B will pay its next dividend in shares rather than cash, and is set to reduce future dividends.

The bank said it required the cash to improve its regulatory capital needs and allow it to compete more strongly in the toughening mortgage market.

Johnston Press is raising £170 million through a rights issue and £42 million in a share placing with Malaysian group Usaha Tegas. The Malaysians are also buying shares from the Johnston family, giving them a 20% stake in the publisher of the Yorkshire Post.

Johnston said advertising revenues had slumped in recent weeks with property ad revenues down 12.1% and motor ads off 16.4%. Circulation revenues were flat.

The new shares are being offered on a one-for-one basis at 53p, a 61% discount to last night's closing price.

B&B shares today fell 31/4p to 3341/2p, their lowest since the bank converted from being a building society eight years ago. Johnston Press dropped 123/4p to 123p.