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Northern Rock shares fall again | Northern Rock shares fall again |
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Shares in Northern Rock fell by more than 25% on Tuesday, before recovering to stand 11% down, as uncertainty about whether it would be bought continued. | Shares in Northern Rock fell by more than 25% on Tuesday, before recovering to stand 11% down, as uncertainty about whether it would be bought continued. |
Its shares cost £12 each in February, but have fallen steeply this week to stand at 93p at midday on Tuesday. | Its shares cost £12 each in February, but have fallen steeply this week to stand at 93p at midday on Tuesday. |
The bank has said offers for it were below its closing price on Friday. | The bank has said offers for it were below its closing price on Friday. |
Meanwhile, a Reuters report says US buyout firm JC Flowers submitted an offer that included an offer to Rock shareholders at a "nominal value". | Meanwhile, a Reuters report says US buyout firm JC Flowers submitted an offer that included an offer to Rock shareholders at a "nominal value". |
Trading in Northern Rock shares was briefly halted on Tuesday. | Trading in Northern Rock shares was briefly halted on Tuesday. |
The Bank of England has lent it more than £24bn in emergency funding, a move defended by Chancellor Alistair Darling in the Commons on Monday. | The Bank of England has lent it 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". |
There must be a concern that a false market has developed in the Northern Rock stock Robert Peston, BBC business editor class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/11/rock_needs_1bn.html">Read Robert's thoughts in full 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". |
Are you a Northern Rock shareholder? Send us your experiences using the form below: | Are you a Northern Rock shareholder? Send us your experiences using the form below: |