Daily Banking Industry News
Sunday 27th of January 2008

Banking Sectors:

By company:

By organisation:

Also see:

December 5, 2007

Northern Rock Bidder Withdraws

by Stewart Douglas

Story link: Northern Rock Bidder Withdraws

One of the main contenders in the takeover battle to secure Northern Rock has today announced it is to drop out of the race to buy the struggling bank, as more groups are expected to place their revised bids.

The Tyne consortium, which brought together the likes of equity house Five Mile and entrepreneur Alf Gooding have announced they will no longer be competing in the takeover bid, which is currently headed by the Virgin led consortium as the favoured potential suitor.

The move follows comments from Chancellor Alistair Darling earlier in the week which suggested the British taxpayer would benefit from a bidding war, encouraging Northern Rock to consider the bids from all potential contenders.

However, it would appear that despite the Chancellor’s pleas the Tyne consortium will no longer be a contributor to any potential bidding war that may emerge for the major UK mortgage lender.

The bid is currently led by a consortium of the Virgin Group along with AIG and others, who are intending to rebrand as ‘Virgin Money’.  However it is thought that a number of other private equity firms that have previously expressed an interest in the bank are poised to lodge revised bids for the bank prior to any close-out with Virgin.

Of the remaining groups are ex-Abbey chief Luqman Arnold’s Olivant and former Goldman Sachs man Chris Flowers’ private equity firm JC Flowers, along with a further interest from US-based equity firm Cerberus.

Of most central to the bidding process is the way in which the bank is to refund its £20 billion debt to the British taxpayer, and it is thought that the pending JC Flowers bid will reflect a more flexible approaching to dealing with this problem over time.


 Email This Post  Print This Post

Add to Bookmarks:



Related stories to: Northern Rock Bidder Withdraws

Olivant to submit revised Northern Rock bid  Olivant, the investment group headed by former Abbey chief executive, Luqman Arnold, is expected to ...

Virgin’s preferred Northern Rock bid meets opposition  Virgin Group's position as head of the consortium named today as preferred bidder for Northern Rock ...

Virgin loses “preferred” status in Northern Rock sale  Virgin Group has lost its "preferred bidder" status in the battle for Northern Rock because rival bi...

JC Flowers demands Northern Rock Treasury discussions  JC Flowers, the US private equity firm, is threatening to drop its bid for Northern Rock. The buy...

Olivant’s bid details for Northern Rock announced  One of the bidders for struggling bank Northern Rock has made plain the detail of its offer. Oliv...

No Comments »

No comments yet.

Leave a comment

Previous: « Rate cut in Canada
Next: Ackermann Snubs Citi Offer »

Visited 262 times, 8 so far today since July 12th 2007

Investment Banking News

Borrowing & Lending News