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| Version 0 | Version 1 |
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| Bidder 'quits Northern Rock race' | Bidder 'quits Northern Rock race' |
| (about 7 hours later) | |
| One of the frontrunners to buy Northern Rock has pulled out of the running, newspaper reports have claimed. | One of the frontrunners to buy Northern Rock has pulled out of the running, newspaper reports have claimed. |
| US buyout firm JC Flowers sent letters to the Treasury notifying officials of its position, the Financial Times and Daily Telegraph reported. | US buyout firm JC Flowers sent letters to the Treasury notifying officials of its position, the Financial Times and Daily Telegraph reported. |
| The firm, they said, decided it could not agree a deal acceptable to it and the government - which is currently propping up the stricken lender. | |
| A Virgin-led consortium is currently the preferred bidder for Northern Rock. | A Virgin-led consortium is currently the preferred bidder for Northern Rock. |
| Another bidder, the Olivant consortium led by former Abbey boss Luqman Arnold, is expected to make a revised proposal on Friday. | |
| However reports suggest that it is refusing to make any major concessions in the terms of its approach. | |
| Bid machinations | Bid machinations |
| Analysts saw JC Flowers as the most credible alternative should the Virgin bid not prove acceptable to Northern Rock shareholders. | |
| Neither JC Flowers nor the Treasury has commented on the firm's reported move, which would be a major blow in efforts to resolve the crisis surrounding the mortgage lender. | Neither JC Flowers nor the Treasury has commented on the firm's reported move, which would be a major blow in efforts to resolve the crisis surrounding the mortgage lender. |
| Representatives from JC Flowers have been holding talks with Treasury officials in recent days about its proposed bid. | Representatives from JC Flowers have been holding talks with Treasury officials in recent days about its proposed bid. |
| This would see £15bn of the £25bn so far lent by the government to Northern Rock being repaid upfront, with the remainder being paid back over three years. | This would see £15bn of the £25bn so far lent by the government to Northern Rock being repaid upfront, with the remainder being paid back over three years. |
| According to the FT, JC Flowers concluded after these meetings that any offer would not be able to satisfy its shareholders as well as meet government criteria for the sale. | According to the FT, JC Flowers concluded after these meetings that any offer would not be able to satisfy its shareholders as well as meet government criteria for the sale. |