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’[Something for the weekend] An irrelevant bargain for Branson
When you’re short of money, the odd £747m always comes in useful, but it doesn’t go far these days. It’s enough to finance the UK state spending machine for about nine hours. The government had spent more than the proceeds from the sale of Northern Rock before it could read the reaction to it in Friday’s papers.
Bank of Beard
That’s the homepage of Richard Branson’s new acquisition; Church House Trust, which he is planning to use as a platform to launch a retail banking business in the UK.
Or as the man himself puts it in the offer document:
Snap news
Breaking pre-market news on Friday,
- Richard Branson’s Virgin Money to acquire Church House Trust, which it will use as a platform to “develop a retail banking business in the UK” – statement.
- RBS announces sale of fund management assets to Aberdeen Asset Management – statement,
Tesco eyes Northern Rock
Tesco has emerged as a potential bidder for Northern Rock as the government races to sell the state-owned lender before a general election, reports The Times. The UK supermarket chain has shown provisional interest in buying the bank,
Branson in talks with DIC over bmi
Sir Richard Branson has held talks with Dubai International Capital, the $12bn sovereign wealth fund, about financing a possible takeover bid for UK airiline bmi, reports The Times. The billionaire entrepreneur is understood to have joined executives from his Virgin Group in Dubai recently to discuss potential deals in the health,
Treasury demands better Northern Rock takeover terms
The government has told Richard Branson’s Virgin Group that if it wants to take over stricken mortgage bank Northern Rock, it will have to improve its existing terms, which are described as being “geared to suit its new investors.”
Rock group backs management
The proposal by Northern Rock’s management team to rescue the stricken bank has won further backing from a group of investors that has indicated it would be willing to underwrite £200m of a rights issue needed to capitalise the lender.
Virgin: ‘Rock is no gravy train ticket’
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”.
Northern Spin and Guff
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.
Olivant withdraws Northern Rock bid
Olivant pulled out of plans to rescue Northern Rock on Monday night in a move that confounded British ministers and left just two proposals to take control of the stricken bank. The private equity group pulled out an hour before the afternoon deadline for bids,
Northern Rock: And Tuesday’s price will be….
With a sulk, Luqman Arnold exited stage left on Monday. Olivant has been unable to formulate a value creating proposal for Northern Rock which meets the firm’s investment criteria.
So let’s look now at the Virgin mathematics.
Northern Rock suitors clarify intentions
Proposals from bidders hoping to take control of Northern Rock are expected to be submitted by Monday‘s deadline, with the bank’s own management claiming to have won pledges of at least £400m in support of its own rescue plan.
Bidders’ plans for Rock set to hit jobs
The three bidders vying for Northern Rock are set to submit highly risk-averse business plans that could lead to job losses at the stricken Newcastle bank, which employs 6,500. All three proposals will see Northern Rock initially shrink in size and write far less new mortgage lending,
UK confirms £30bn bond support for Rock
UK taxpayers are set to support stricken mortgage-lender Northern Rock for at least the next three years, under a government-sponsored financing plan likely to raise public sector net debt by close to £100bn.
Windfall tax plan for N Rock buyers
Gordon Brown, the UK prime minister, will propose that UK taxpayers gain a slice of any windfall profits made by a private buyer of Northern Rock, in an effort to deflect criticism that his government is subsidising a knock-down sale of the stricken UK mortgage-lender.
Virgin-led group strengthens Rock bid
A consortium led by Virgin Group has sought to beef up its bid for Northern Rock as the UK government prepares to make a decision on the future of the stricken bank. Virgin Group has lined up Peter McNamara,
While Goldman feels heat on Rock finance
Even as Gordon Brown deliberates the future of Northern Rock, pressure is mounting on Goldman Sachs to produce a financing package to push through a sale of Northern Rock and stave off nationalisation of the stricken bank,
Chances dwindle for Rock sale
There is now less than a 50% chance that Northern Rock will be sold – unless shareholders of the stricken UK bank break the logjam over any potential deal, say people familiar with the process. The government
But the Rock’s pension fund could need plugging
While the stricken bank and its advisers struggle to get cash in the door, the potential demands on those seeking to take over Northern Rock rise.
The trustees of the bank’s pension scheme on Friday sent a rather measured letter to its members,
Consortium in bid talks over Rock
A consortium headed by Welsh entrepreneur Alfred Gooding on Monday met the UK Treasury to discuss prospects of re-entering the auction process for Northern Rock. The Tyne consortium, which includes Five Mile Capital Partners and Olympus Partners,
Olivant ready to pay maximum for Northern Rock
Olivant, the consortium led by former Abbey National boss Luqman Arnold, is bowing to pressure to pay £800m for troubled mortgage lender Northern Rock, even as rival bidder Virgin also takes steps to increase its profile as a serious contender,
Olivant to stay in Northern Rock auction
Olivant, the private equity group, on Thursday night appeared to have been persuaded to stay in the auction for stricken UK lender Northern Rock after gaining reassurance it would be treated on equal footing to a rival bid consortium led by Virgin Group.
Rock bid decision held until January
Prospects that the successful bidder for Northern Rock, the stricken UK mortgage lender, would be named by Christmas receded on Monday, as it emerged that the future of the bank, which owes £25bn to the Bank of England,
Olivant puts its marker on Rock
Olivant, the buyout group run by Luqman Arnold, former CEO of Abbey National, is expected to lodge its bid proposal on Thursday or Friday for the stricken UK bank Northern Rock. Olivant was on Wednesday night finalizing details with Lazard,
JC Flowers revisits Northern Rock bid
JC Flowers, the private equity group, on Tuesday attempted to get back into the auction process for Northern Rock as it met the embattled bank’s board. The US company is competing against a few rival bids,
Treasury draws up plan for Rock depositors
Treasury and Bank of England officials are drawing up contingency plans to pay Northern Rock’s depositors their money if the stricken lender has to be put into administration. The plan would see the central bank buying Northern Rock’s deposits and swiftly paying the balances back to customers.
Bidding war seen for Northern Rock
Alistair Darling, UK chancellor, is hoping Northern Rock’s future can be decided within weeks, as his officials encourage the troubled bank to look beyond Virgin, its preferred bidder, at rival offers.
Rock seeks fully financed plan from Olivant
Northern Rock on Wednesday urged Olivant, the private equity group interested in bidding for the embattled bank, to come up with a fully-financed business plan. The stricken Newcastle bank has selected a consortium led by Virgin Group as preferred bidder but is not in exclusive talks.