There are now just two possible buyers for embattled British bank Northern Rock. The investment firm Olivant saia it has pulled out of the race to rescue the ailing mortgage lender. That leaves just an "in-house" management team and Richard Branson's Virgin Group.
Branson's proposal includes merging his Virgin Money business - valued at 330 million euros - with Northern Rock. He would also sell 660 million euros worth of new shares and put in 660 million in cash.
Virgin has been reported to be the British government's preferred choice as it tries to protect more than 30 billion euros worth of taxpayers money which has been propping up the bank since it ran into trouble four months ago.
Northern Rock customers pulled out their cash when the global credit crisis caused its business model to collapse.
Whether Virgin or the "in-house" proposal succeeds, the bank will have to restructure and
shrink its mortgage lending in order to pay back the government loan. The British Treasury will make a decision within one month on who has won.
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