So, a two-horse race. The lesser favoured 'in-house' Northern Rock team see the way ahead as shrinking the Rock's loan book, raising £500m from existing shares and reorganising its operations. What this means for the staff is unclear, but it would require a much smaller operation.
The preferred bid from Sir Richard Branson's Virgin Money means the loss of the Northern Rock name, becoming Virgin Bank. Branson puts in £500m from his consortium, £500m to be raised from existing shareholders and another £250m from the value of the merged Virgin money.
Both options will hit shareholders and guarantee the Northern Rock we knew will soon be very different.
There is, of course, no guarantee that either bid will be approved by the authorities - and even the chosen one may fall at its final examination by the European Commission. Then Northern Rock would become completely nationalised, certainly not the Government's preferred end to this sorry tale.
Posted by Michael Wilson, Business Editor
And now, 6 weeks later, we get to:-
'Knacker of the Yard' fails to find any evidence to prosecute the political villains, after the greatest UK Bank Robbery in history?
Disgusted
Dennis
Cramlington
Northumberland
Posted by: Dennis, Cramlington Northumberland 18 Feb 2008 10:43:55
Honest Den, the Bookie....
Get on quick.
The Northern Rock Stakes Handicap.
Virgin : 20-1
In House Bid : 10-1
Some other offer (we haven't heard of yet) : 3-1
Gordon Brown to be new CEO : 6-4
Shareholder legal action in Europe : 2-5 fav.
Posted by: Dennis, Cramlington Northumberland 8 Feb 2008 16:29:29
First the NR Board announce Virgin as the 'preferred bidder' -even though shareholders will resist their measly offer, originally at one five hundredth of asset value, to water down current shareholder interests even further.
Now the same NR Board, with only the same 'preferred bidder' apparently left in the race, announce their own plans to 'thwart' the Virgin bid......
Whats going on, Michael?
Do they know something we all don't (again)?
Who is this Paul Thompson anyway, and how does he suddenly have a leading chat to offer?
Posted by: Dennis, Cramlington Northumberland 8 Feb 2008 16:22:40
Sir
And what a prudent lot of business heads we have, borrowing £25BN from the taxpayer, return £500M+£500M+£250M in one scenario and £500M in the other.
So, is there any surprise to note that the authorities will be cautious as [Earth Wind & Fire] keep telling them you [Can't Hide Love]?
Not much of an Olive branch is it Luqman?
Posted by: Khalid 5 Feb 2008 01:32:23