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| Version 1 | Version 2 |
|---|---|
| Rock suitor threatens ultimatum | Rock suitor threatens ultimatum |
| (about 11 hours later) | |
| Olivant is threatening to abandon its attempted rescue of Northern Rock. | Olivant is threatening to abandon its attempted rescue of Northern Rock. |
| It has written to Northern Rock accusing it of frustrating its attempts to negotiate a massive line of credit with Citigroup and Deutsche Bank. | It has written to Northern Rock accusing it of frustrating its attempts to negotiate a massive line of credit with Citigroup and Deutsche Bank. |
| Olivant, led by the former boss of Abbey National Luqman Arnold, also wants its team to take over the Rock's management with immediate affect. | Olivant, led by the former boss of Abbey National Luqman Arnold, also wants its team to take over the Rock's management with immediate affect. |
| Unless the demands are met, Olivant has said that it will walk away from the rescue attempt. | Unless the demands are met, Olivant has said that it will walk away from the rescue attempt. |
| The Rock's board has been stunned by the ultimatum. | The Rock's board has been stunned by the ultimatum. |
| It felt it was providing significant information to Olivant and was trying to meet all its demands. | It felt it was providing significant information to Olivant and was trying to meet all its demands. |
| Serious concern | Serious concern |
| Olivant's frustration is a serious concern for both the Rock and for the Treasury - which is desperate to find an orderly solution to the Rock's financial difficulties that would lead to the gradual repayment of more than £25bn of taxpayer-backed loans to the bank. | Olivant's frustration is a serious concern for both the Rock and for the Treasury - which is desperate to find an orderly solution to the Rock's financial difficulties that would lead to the gradual repayment of more than £25bn of taxpayer-backed loans to the bank. |
| If Olivant pulls out, there would be just one potential bidder for the Rock, a consortium led by Sir Richard Branson and Virgin. | If Olivant pulls out, there would be just one potential bidder for the Rock, a consortium led by Sir Richard Branson and Virgin. |
| However, it too is not finding it easy to raise a jumbo loan of £11bn to repay some of the taxpayer-backed loan. | However, it too is not finding it easy to raise a jumbo loan of £11bn to repay some of the taxpayer-backed loan. |
| Also, many shareholders will be furious if the Olivant plan collapses. It had received support from hedge funds and investment institutions controlling almost 25% of the Rock's shares. | Also, many shareholders will be furious if the Olivant plan collapses. It had received support from hedge funds and investment institutions controlling almost 25% of the Rock's shares. |
| In particular, Olivant is supported by two powerful hedge funds, RAB Capital and SRM Global. | In particular, Olivant is supported by two powerful hedge funds, RAB Capital and SRM Global. |
| The Treasury has been working on a plan to nationalise the Rock, in the event that a commercial solution to its problems proves impossible to find. | The Treasury has been working on a plan to nationalise the Rock, in the event that a commercial solution to its problems proves impossible to find. |