Even one of the London market’s best days of the year could not prevent a further heavy fall for Northern Rock onWednesday. Shares in the troubled mortgage lender dropped a further 16% on Wednesday to 257p, taking losses since Friday to 60%, as rumours swirled in the City that Lloyds TSB and HBOS had made low-ball offers for the stricken bank. The rumoured HBOS approach was said to have been pitched at just 100p. Traders said Northern Rock shares had also been pressured by rumours of write-downs in its £8bn ‘Available for Sale’ portfolio. Northern Rock’s poor share performance was in marked contrast to the rest of the UK banking sector.

This entry was posted by Gwen Robinson on Thursday, September 20th, 2007 at 5:41 and is filed under Capital markets. Tagged with hbos, lloyds tsb, northern rock. Edit this entry.