|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Friday 19th of June 2009
October 31, 2007

Northern Rock rescue deal is some way off


by Kay Murchie
”Northern

Shares in Northern Rock lost nearly 8% on Monday after concerns that a rescue deal may be a long way off. The crisis-torn bank plunged as low as 175.3p at one point before closing at 190p.

Virgin Group, owned by Sir Richard Branson, was looking to take a controlling stake in the bank with the backing of investors in the US and the Middle East. In addition, other suitors are private equity groups, JC Flowers, Cerberus, Blackstone and Apollo.
This week Northern Rock has rejected claims that it is planning to axe jobs but said that recruitment has been frozen.

Matt Ridley quit his position as chairman 2 weeks ago and it was expected that other top executives would step down when in fact the opposite has happened. Chief Executive, Adam Applegate, has resigned from his other role as non-exec director of housebuilder, Persimmon, in order to focus his attention on Northern Rock.

Many shareholders in the bank believe that it can still be rescued without the need for a takeover. However, this is looking more unlikely and with the treasury keen to keep Northern Rock under the control of a financial institution, which leaves Virgin Money out in the cold, it is anticipated that GMAC, an insurance company and bank, is now the forerunner.

Discuss this in the Finance Markets forums

Story link: Northern Rock rescue deal is some way off


Add to Bookmarks:

ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

 

Tags:

 

Previous: « House price forecast revised to two-year fall
Next: Building Societies offer the best mortgages »

Visited 1409 times, 3 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment