Which of the following statements is true?
Paul Thompson has been peddling lies.
We suspect politicking here, on a grand scale here.
Luqman has made it very clear, he will be working through the weekend on this. The idea that Olivant have decided to pull out is laughable.
Olivant has been forced to abandon its bid by fresh obstacles put in place by the government at the last moment
This is brinkmanship. Olivant will return within a couple of days.
(FT Alphaville) has been duped by people who are short.
Answer: all of them, and none of them.
That’s “all” in the sense that each is a verbatim quote from someone purporting to be close to those working to save Northern Rock. And “none” in the sense that each is a little example of the nonsense peddled by the very same people.
How long is the buffoonery surrounding this second-tier former building society going to continue?
The City’s elite and, we assume, John Kingman, the treasury mandarin who has let it be known that he is “in charge” of the Rock situation, knew on Friday afternoon that Olivant could not make its numbers stack up.
It’s a fair (and educated) guess that Luqman Arnold’s advisers last week sought firm assurances of institutional support for its Rock rights issue – and found they were not available. They went round the London market on Friday and were told “No Way.” Full stop.
The idea that the Olivant team suddenly stumbled into a proviso that the guarantee accompanying the Brown Bonds securitisation of Rock’s Bank of England borrowings would only last three years is simply laughable.
So too is the notion that Rock’s self-styled, johnny-come-lately, unfunded internal rescue plan stands any chance of getting off the ground. There are three options here:
- A Virgin takeover, which will allow Richard Branson and his partners to bank perhaps £1bn over five years
- Nationalisation, which will expedite the end of the Labour government
- Close Rock down
Investors who bought shares on Monday – or who cancelled a decision to sell – should be consulting their lawyers. Those who bid Rock stock up to 92p at one stage on Tuesday morning should consult a doctor.