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| Version 1 | Version 2 |
|---|---|
| Branson 'confident' on Rock deal | Branson 'confident' on Rock deal |
| (about 6 hours later) | |
| Sir Richard Branson says he is confident a deal can be done to rescue Northern Rock if government advisers come up with the right financing. | |
| His Virgin Group expects to hear from Goldman Sachs, the investment bank advising the government on the deal, within days. | His Virgin Group expects to hear from Goldman Sachs, the investment bank advising the government on the deal, within days. |
| Goldman will give details of a funding package being prepared for Northern Rock's prospective buyers. | Goldman will give details of a funding package being prepared for Northern Rock's prospective buyers. |
| Sir Richard's comments come amid talk the lender will be nationalised. | |
| Chancellor Alistair Darling and Prime Minister Gordon Brown have both said that taking Northern Rock into public ownership is a possibility. | Chancellor Alistair Darling and Prime Minister Gordon Brown have both said that taking Northern Rock into public ownership is a possibility. |
| "I would hope and expect to get that package in the next two to three days," Sir Richard told reporters as he flew to China as part of a British business delegation with the prime minister. | |
| "Subject to what Goldman Sachs has to say, I'm still confident a deal can be done, but it depends what Goldman Sachs comes back with." | "Subject to what Goldman Sachs has to say, I'm still confident a deal can be done, but it depends what Goldman Sachs comes back with." |
| Olivant group, led by former Abbey boss Luqman Arnold, has also put forward a proposal to take control of Northern Rock. | Olivant group, led by former Abbey boss Luqman Arnold, has also put forward a proposal to take control of Northern Rock. |
| Bond plan | Bond plan |
| Goldman has advised the Treasury that the optimal way for the Rock to repay any of the loans it has received from taxpayers would be to convert those loans into bonds for sale to international investors. | Goldman has advised the Treasury that the optimal way for the Rock to repay any of the loans it has received from taxpayers would be to convert those loans into bonds for sale to international investors. |
| Those bonds, which would have a life of five years, could only be sold if the government paid substantial fees to financial institutions called reinsurers to guarantee the bonds against default. | Those bonds, which would have a life of five years, could only be sold if the government paid substantial fees to financial institutions called reinsurers to guarantee the bonds against default. |
| The European Commission could decide that the government subsidy for these bonds was a breach of state-aid rules. | The European Commission could decide that the government subsidy for these bonds was a breach of state-aid rules. |
| But if it did not, the Treasury could be using taxpayers' money to prop up the Rock until well after the next general election. | But if it did not, the Treasury could be using taxpayers' money to prop up the Rock until well after the next general election. |
| That is why colleagues of the chancellor and the prime minister say they may determine that it would be cleaner, simpler and ultimately cheaper to take Northern Rock into public ownership. | That is why colleagues of the chancellor and the prime minister say they may determine that it would be cleaner, simpler and ultimately cheaper to take Northern Rock into public ownership. |