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| Version 6 | Version 7 |
|---|---|
| Virgin named as top Rock suitor | Virgin named as top Rock suitor |
| (10 minutes later) | |
| Northern Rock has confirmed that it has chosen a consortium led by Sir Richard Branson's Virgin Group as its preferred buyer for the stricken bank. | Northern Rock has confirmed that it has chosen a consortium led by Sir Richard Branson's Virgin Group as its preferred buyer for the stricken bank. |
| Virgin's offer - which has been backed by the Treasury - includes an immediate repayment of £11bn of the £25bn the bank owes the Bank of England. | Virgin's offer - which has been backed by the Treasury - includes an immediate repayment of £11bn of the £25bn the bank owes the Bank of England. |
| If the bank's shareholders block the deal it could be nationalised or be taken into administration. | If the bank's shareholders block the deal it could be nationalised or be taken into administration. |
| Northern Rock hit funding difficulties after world credit markets dried up. | Northern Rock hit funding difficulties after world credit markets dried up. |
| New name | |
| The Virgin offer proposes an injection of £1.3bn of new cash into the Rock, with half of that money coming from the consortium. | The Virgin offer proposes an injection of £1.3bn of new cash into the Rock, with half of that money coming from the consortium. |
| The remainder would be raised through an offer to existing Rock shareholders to buy new shares for 25 pence each. | The remainder would be raised through an offer to existing Rock shareholders to buy new shares for 25 pence each. |
| On that basis, Virgin values Northern Rock at £200m, considerably less than its current market value of £362m. | |
| Virgin would end up with 55% of the new company, leaving current shareholders with 45%. | |
| The new business would be rebranded Virgin Money, though it would keep its existing stock market listing. | |
| Virgin will then repay the remaining £14bn of Treasury loans over the next three years. | |
| The consortium has also informed the Rock that it has no current intention of making "any material reduction" in employment in Northern Rock. | |
| It also intends to continue to operate the business from Newcastle upon Tyne. |