Shares in troubled bank Northern Rock have fallen by more than 20% on Tuesday after it revealed there had been no interest in a bid for the whole firm.
Shares in troubled bank Northern Rock have fallen by more than 17% on Tuesday after it revealed there had been no interest in a bid for the whole firm.
Northern Rock shares stood at over £12 each in February, but have now fallen to below 85 pence apiece.
Northern Rock shares stood at over £12 each in February, but have now fallen to below 90 pence apiece.
The Bank of England has lent the bank more than £24bn in emergency funding, a move defended by Chancellor Alistair Darling in the Commons on Monday.
The Bank of England has lent the bank more than £24bn in emergency funding, a move defended by Chancellor Alistair Darling in the Commons on Monday.
Both the Conservatives and the Liberal Democrats have criticised the loans.
Both the Conservatives and the Liberal Democrats have criticised the loans.
Government loan
Government loan
Mr Darling had told the Commons in a statement that the loan move was "right" to give the bank time to assess its "strategic options".
Mr Darling had told the Commons in a statement that the loan move was "right" to give the bank time to assess its "strategic options".
In addition, the government has pledged to guarantee the £16bn worth of savings deposits held by Northern Rock customers.
In addition, the government has pledged to guarantee the £16bn worth of savings deposits held by Northern Rock customers.
Those who have so far expressed interest in Northern Rock include a consortium led by Sir Richard Branson's Virgin, and Olivant, an investment firm led by former Abbey chief executive Luqman Arnold.
Those who have so far expressed interest in Northern Rock include a consortium led by Sir Richard Branson's Virgin, and Olivant, an investment firm led by former Abbey chief executive Luqman Arnold.
Private equity firms JC Flowers and Cerberus have also looked at the UK's fifth-biggest mortgage-lender.
Private equity firms JC Flowers and Cerberus have also looked at the UK's fifth-biggest mortgage-lender.
Credit freeze
Credit freeze
Northern Rock, which has around 6,000 staff, has said it expects to receive further expressions of interest over the "next few days".
Northern Rock, which has around 6,000 staff, has said it expects to receive further expressions of interest over the "next few days".
But the company has said the proposals received so far from potential investors were "materially below" the stricken bank's share price.
But the company has said the proposals received so far from potential investors were "materially below" the stricken bank's share price.
Northern Rock was forced to seek emergency funding from the Bank of England in September after the jamming up of world credit markets wrecked its business model.
Northern Rock was forced to seek emergency funding from the Bank of England in September after the jamming up of world credit markets wrecked its business model.
The government has a number of options when it comes to Northern Rock's future - it could let the bank go into receivership, seek a private buyer, or take it over itself.
The government has a number of options when it comes to Northern Rock's future - it could let the bank go into receivership, seek a private buyer, or take it over itself.
Meanwhile, Northern Rock says it continues to be engaged in discussions with refinancing companies to explore refinancing "or reorganisation solutions for the company".
Meanwhile, Northern Rock says it continues to be engaged in discussions with refinancing companies to explore refinancing "or reorganisation solutions for the company".
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