Bidders don’t often attempt to minimise the prospect of a healthy return on an investment – but Sir Brian Pitman, the man leading Virgin Group’s bid for Northern Rock, said Tuesday that taking over the stricken UK lender is not a ticket for a “gravy train”. His remarks were aimed at countering suggestions that Virgin could make a killing at the taxpayer’s expense because of the UK government’s assistance with a financing package to repay the £25bn Bank of England loan to Northern Rock. The Virgin consortium this week took pole position in the contest after Olivant, the private equity group, dropped out. It is competing with a restructuring proposal from the bank’s own management team as the only alternative to nationalisation. On Tuesday, Treasury officials held talks with Olivant to see whether it can be lured back but Olivant is understood to have no plans in that respect.

This entry was posted by Gwen Robinson on Wednesday, February 6th, 2008 at 5:37 and is filed under Capital markets, M&A, People, Private equity. Tagged with northern rock, Olivant, virgin. Edit this entry.