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| Version 3 | Version 4 |
|---|---|
| Fresh interest in Northern Rock | Fresh interest in Northern Rock |
| (about 3 hours later) | |
| Northern Rock has said it has received further "indicative expressions of interest" from firms which might be considering a buyout or investment. | Northern Rock has said it has received further "indicative expressions of interest" from firms which might be considering a buyout or investment. |
| But it said one interested party may make an offer for the bank below its closing share price of 97p on Tuesday. | But it said one interested party may make an offer for the bank below its closing share price of 97p on Tuesday. |
| It also said expressions of interest would not necessarily lead to offers for the bank, or investment in it. | It also said expressions of interest would not necessarily lead to offers for the bank, or investment in it. |
| On Tuesday, US buyout firm JC Flowers submitted a bid that included an offer to shareholders of a "nominal value". | On Tuesday, US buyout firm JC Flowers submitted a bid that included an offer to shareholders of a "nominal value". |
| And a second bid emerged on Tuesday from American private equity firm Cerberus. | And a second bid emerged on Tuesday from American private equity firm Cerberus. |
| Credit squeeze | Credit squeeze |
| As well as JC Flower and Cerberus, two other firms which have expressed an interest in making a move for the bank are Virgin Group and investment firm Olivant. | As well as JC Flower and Cerberus, two other firms which have expressed an interest in making a move for the bank are Virgin Group and investment firm Olivant. |
| In afternoon London trade on Wednesday shares in Northern Rock were down 12.58% at 84.80p. | |
| There can be no certainty that the discussions with interested parties will lead to an investment in or offer for the company Northern Rock See Northern Rock's shares | There can be no certainty that the discussions with interested parties will lead to an investment in or offer for the company Northern Rock See Northern Rock's shares |
| Northern Rock was hit by the worldwide credit freeze which left it unable to borrow money from other banks to fund its business model. | Northern Rock was hit by the worldwide credit freeze which left it unable to borrow money from other banks to fund its business model. |
| Meanwhile shares in the UK's third-largest buy-to-let mortgage lender, Paragon, have again fallen heavily on Wednesday, by 20%, after falling nearly 40% on Tuesday. | Meanwhile shares in the UK's third-largest buy-to-let mortgage lender, Paragon, have again fallen heavily on Wednesday, by 20%, after falling nearly 40% on Tuesday. |
| Paragon said the recent turmoil in the global credit markets had also hit its normal sources of finance. | Paragon said the recent turmoil in the global credit markets had also hit its normal sources of finance. |
| It could launch a £280m rights issue if it fails to find other financing by the end of February. | It could launch a £280m rights issue if it fails to find other financing by the end of February. |
| 'Clarity' wanted | 'Clarity' wanted |
| In contrast, the Bank of England has lent Northern Rock an estimated £24bn in emergency funding, a move defended by Chancellor Alistair Darling in the Commons on Monday. | In contrast, the Bank of England has lent Northern Rock an estimated £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. |
| The company's advisors have begun discussions with a number of selected interested parties to clarify their proposals Northern Rock | The company's advisors have begun discussions with a number of selected interested parties to clarify their proposals Northern Rock |
| Mr Darling told the Commons in a statement that the loan move was "right" to give the bank time to assess its "strategic options". | Mr Darling told the Commons in a statement that the loan move was "right" to give the bank time to assess its "strategic options". |
| 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. |
| Northern Rock, which has about 6,000 staff, is keen to secure the bank's future as soon as it can. | Northern Rock, which has about 6,000 staff, is keen to secure the bank's future as soon as it can. |
| HAVE YOUR SAY It is scandalous that the government intervened in this Laura Roberts, London Send us your comments | HAVE YOUR SAY It is scandalous that the government intervened in this Laura Roberts, London Send us your comments |
| In a statement it said: "The company's advisors have begun discussions with a number of selected interested parties to clarify their proposals. | In a statement it said: "The company's advisors have begun discussions with a number of selected interested parties to clarify their proposals. |
| "The company is aware that all stakeholders in the company want clarity on the outcome of the strategic review as soon as possible and is therefore progressing the process as quickly as possible." | "The company is aware that all stakeholders in the company want clarity on the outcome of the strategic review as soon as possible and is therefore progressing the process as quickly as possible." |
| 'Guarantee arrangements' | 'Guarantee arrangements' |
| The review will be completed by February although Northern Rock said it expected to make an announcement on its future before then. | The review will be completed by February although Northern Rock said it expected to make an announcement on its future before then. |
| But it warned: "There can be no certainty that the discussions with interested parties will lead to an investment in or offer for the company or for all or any part of its business or that any such investment or offer will be implemented". | But it warned: "There can be no certainty that the discussions with interested parties will lead to an investment in or offer for the company or for all or any part of its business or that any such investment or offer will be implemented". |
| It also said that the existing deposit guarantee arrangement announced by the Treasury, and the revised facilities agreed with the Bank of England remain in place. | It also said that the existing deposit guarantee arrangement announced by the Treasury, and the revised facilities agreed with the Bank of England remain in place. |
| The bank said: "These guarantee arrangements will protect all retail deposits held with Northern Rock regardless of the amount deposited and apply to all existing, re-opened and new retail accounts". | The bank said: "These guarantee arrangements will protect all retail deposits held with Northern Rock regardless of the amount deposited and apply to all existing, re-opened and new retail accounts". |